Locked down again

Today’s news headlines:

‘Germany, France impose month-long curbs to rein in virus’. Both countries will impose restrictions on movement for at least a month, as Europe struggles to control the rapid resurgence of coronavirus. Bars, restaurants, and non-essential services will be shut, while schools and other essential businesses will continue to operate. Chancellor of Germany, Angela Merkel, admitted that it was a difficult day for policy makers, as she seeks to strike a balance between protecting lives and keeping the economy running. (Bloomberg)

‘Trump’s path to victory narrows as Covid-19 cases surge in Midwest’. The outlook for next week’s election is looking worse for Donald Trump each day, as cases of coronavirus surge across key Midwest battlegrounds. Trumps opponent has tried to cast the election as a referendum on the President’s handling of the pandemic, which has claimed the lives of almost 220,000 Americans. Meanwhile, the stock market, which Trump uses as a barometer of his success, fell on coronavirus concerns, with the benchmark S&P 500 index falling 3.5%. (Financial Times)

Today's events, rates, and data 

  • The US Dollar held its ground and stocks tumbled yesterday after a surge in coronavirus cases in Europe, and the US caused investors to seek safe-haven assets. The ECB might begin laying the groundwork today for more monetary policy easing in December, so watch out for movement in the Euro if that comes to fruition.

Today's events

Japan Retail Sales: -8.7% vs -1.9% previously
EU Economic Summit: All day
US Advance GDP: 12.30pm
US Advance GDP Price Index: 12.30pm
US Weekly Jobless Claims: 12.30pm
ECB Monetary Policy Statement: 12.45pm
ECB Press Conference: 12.45pm
ECB Main Refinancing Rate: 12.45pm

Interbank rates:

GBP/USD: 1.3000
GBP/EUR: 1.1070
EUR/USD: 1.1745
USD/CAD: 1.3295