Risk rally shrugs off Covid fears

Today’s news headlines:

‘Pound advances on glimmer of optimism around latest Brexit talks’. Speculation that this week’s Brexit talks might yield a hint of progress helped the Pound surge to its highest in a month against the Dollar. The UK is expected to show a willingness to compromise on issues like fisheries and trade rules, although we are fast approaching the deadline to extend the transition period. (Bloomberg)

‘Republicans join in backlash over Donald Trump’s tactics’. President Trump faced rare criticism from his own party after police used tear gas on peaceful protestors to clear the way for Trump to leave the White House and pose for a photo holding a Bible in front of a nearby church. The President has threatened to call in the military to quell unrest as protestors continue to defy curfews (Financial Times)

Today's events, rates, and data 

  • Yesterday and overnight, another rise in risk sentiment weakened the US Dollar for a fifth straight day as prospects of more government stimulus and a global recovery from the coronavirus encouraged investors to look towards riskier assets. Asian equities rose along with European and US equity futures, while Brent Crude breached $40 a barrel for the first time in almost three months.

Today's events

Aussie GDP q/q: -0.3 vs 0.5% previously
Eurozone final Services PMI: 9.00am
UK final Services PMI: 9.30am
US ADP Non-Farm Employment Change: 1.15pm
Bank of Canada rate statement: 3.00pm
BOC Overnight Rate: 3.00pm
US ISM Non-Manufacturing PMI: 3.00pm

Interbank rates:

GBP/USD: 1.2590
GBP/EUR: 1.1230
EUR/USD: 1.1210
USD/CAD: 1.3500