Musical chairs

Today's news headlines:

'Liz Truss Government in disarray as Home Secretary Suella Braverman quits'. The UK Government was thrown into further turmoil on Wednesday afternoon as the Home Secretary, Suella Braverman, handed in her resignation after 43 days of service and was subsequently replaced by former transport secretary Grant Shapps. In her resignation letter, Braverman berated Truss's party discipline while hinting at disarray at the top of government, while also accusing the PM of breaking 'key pledges', including a planned reversal on a manifesto commitment to reduce immigration. Truss accused the former Home Secretary of breaching national security and 'Cabinet confidentiality' after sending details of a Cabinet meeting discussion about immigration policy to a colleague using a private phone. (Financial Times)

'Ukrainian officials "shocked" as republicans threaten tougher line on aid'. Earlier this week, House minority leader Kevin McCarthy expressed that he anticipates difficulty in passing additional foreign aid for Ukraine, should the Republican party win the House of Representatives in the November midterm elections. The US congress has already passed billions of Dollars in aid for Ukraine since the Russian invasion in February but is expected to tighten its belt as fears of global recession loom. Ukrainian politician David Arakhamia met with McCarthy in Washington recently and was led to believe that American support for Kyiv would continue. Arakhamia was 'shocked' to hear McCarthy's comments. (Financial Times)


Today

Political confusion in the UK continues as Truss's authority is questioned and Grant Shapps settles into his new role as Home Secretary. German producer prices shot up by a massive 45.8% YoY in September, placing further pressure on the ECB to continue its aggressive interest rate hikes, with a 0.75% increase widely expected by markets at the end of the month. 

Events

Australian Unemployment Rate: 3.5% vs 3.5% previously
Philly Fed Manufacturing Index: 1:30PM
US Existing Home Sales: 3:00PM
Federal Reserve Governors speak: 6:30PM 


Interbank rates*:

GBP/USD: 1.1220         
GBP/EUR: 1.1465
EUR/USD: 0.9790
USD/CAD: 1.3760

 

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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.