Made in Britain

Today’s news headlines:

‘UK looks to wean itself off Chinese imports’. The UK government is believed to be in the process of shaking up its supply chains in a bid to become less reliant on the import of key goods from China. The combination of Brexit and the coronavirus has prompted 'Project Defend' – with the overall aim of ensuring Britain retains access to critical goods while diversifying existing trade relationships. According to those working on the project, production of some critical goods will be brought back to the UK after the pandemic exposed the nation’s reliance on imports. (Financial Times)

‘Germany sees swift deal on EU recovery plan amid divisions’. Despite strong headwinds to the European Union’s €750bn coronavirus recovery package, Germany is working towards a quick resolution that would see all states agree to the plan. The programme would make as much as €500bn in grants and €250bn in concessional loans available to member states most affected by the pandemic. The major sticking point seems to be repayment details, with a number of member states reserving approval until they’re assured that taxpayers won’t be on the hook for future repayments. (Bloomberg)

Today's events, rates, and data 

• The Dollar fell again yesterday, ahead of today’s Federal Reserve monetary policy decision. The Aussie and Kiwi Dollars continued their recent rally against the Greenback as both countries look towards increased economic activity following the lifting of restrictions. Overnight, US and European equity futures rose along with Asian equities, but oil fell on a report that US crude inventories increased.

Today's events

French Industrial Production: -20.1% vs -16.2% previously
US CPI and Core CPI: 1.30pm
Federal Funds Rate: 7.00pm
FOMC Statement: 7.00pm
FOMC Economic Projections: 7.00pm
FOMC Press Conference: 7.30pm

 

Interbank rates:

GBP/USD: 1.2755
GBP/EUR: 1.1235
EUR/USD: 1.1352
USD/CAD: 1.3388