Loosening the purse strings

Today’s news headlines:

‘Rishi Sunak to set out £4.3bn plan to tackle threat of mass unemployment’. Today, the UK’s Chancellor will outline his £4.3bn plan to address the threat of mass unemployment stemming from the coronavirus pandemic. Sunak will hold back from any kind of fiscal consolidation while the economic fallout caused by the crisis continues to unravel. With UK public debt topping £2tn in August, the nation’s finances will likely be under pressure until the next general election in 2024. Tax rises will be expected next year, but the Prime Minister has ruled out a return to austerity. (Financial Times)

‘Europe on way to recovery, say leading industrialists’. Those at the head of Europe’s leading industrial companies have signalled that the bloc is well on its way towards recovering from the pandemic, with confidence levels rising for the next six months’ outlook. Expectations for domestic and overseas investment also moved into expansionary territory for these businesses, which combine for revenues of €2tn. However, some noted the fragility of the current recovery, and others commented that the re-emergence of geopolitical tensions could threaten to break existing supply chains. (Financial Times)

Today's events, rates, and data 

  • Investors have been progressing their shift to riskier assets overnight and into this morning, causing another fall in the US Dollar back towards Monday’s two-and-a-half-year low. The Greenback hovered around a two-year low against the New Zealand Dollar along with a two-month low against the Aussie Dollar. Both the Dow and S&P 500 extended gains, with the Dow closing above 30,000—the first time it has breached that mark. European contracts also rose into today’s session along with oil prices.

Today's events

ECB Financial Stability Review: 9.00am
US Preliminary GDP: 1.30pm
US Weekly Jobless Claims: 1.30pm
US Revised UoM Consumer Sentiment: 3.00pm
US FOMC Meeting Minutes: 7.00pm
UK Autumn Forecast Statement: Time TBC

Interbank rates

GBP/USD: 1.3375
GBP/EUR: 1.1230
EUR/USD: 1.1905
USD/CAD: 1.3005

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.