Losing the upper hand

Today’s news headlines:

‘Johnson’s law-breaking Brexit plan faces defeat, Ministers fear’. Boris Johnson’s controversial plan to re-write the Brexit withdrawal agreement, in contravention of international law, is likely to be defeated in the House of Lords after clearing its final stage in the Commons. All of Johnson’s predecessors have attacked the draft legislation, and two senior legal officials have quit the government in protest. The defeat would take away the Prime Minister’s leverage as the UK enters the final stages of trade negotiations with the bloc. (Bloomberg)

‘Joe Biden and Donald Trump clash in chaotic presidential debate’. Last night’s first 2020 US Presidential debate descended into disorder, name-calling, and bickering, with Donald Trump repeatedly interrupting Joe Biden and the Democratic challenger calling the President a racist and telling him to ‘shut up’. With Biden currently ahead in the polls, Trump repeatedly interrupted the former Vice President, without the desired effect of knocking him off balance. Chris Christine, the former New Jersey Republican Governor, said that the President had been too hot-headed, while Larry Sabato, a University of Virginia politics expert, said that the President imploded in one of the worst debate performances ever. (Financial Times)

Today's events, rates, and data 

  • US and European stock futures fell following the chaotic Presidential debate, while Chinese stocks also slipped, despite positive manufacturing data. The US Dollar was little changed over the Asian session.

Today's events

China Manufacturing PMI: 51.5 vs 51.0 previously
UK Final GDP: -19.8 vs -20.4% previously
ECB President Lagarde speaks: 8.20am
US ADP Non-Farm Employment Change: 1.15pm
Canada GDP: 1.30pm
US Final GDP: 1.30pm
US Chicago PMI: 2.45pm
US Pending Home Sales: 3.00pm

Interbank rates:

GBP/USD: 1.2835
GBP/EUR: 1.0935
EUR/USD: 1.1735
USD/CAD: 1.3400