Still waiting on a deal

Today’s news headlines:

‘Brexit talks remain on ice as UK seeks EU concessions’. The EU are waiting for the UK to return to the Brexit negotiating table after a call between Michel Barnier and David Frost yesterday. Barnier sees Thursday as the earliest opportunity to resume face-to-face talks in London but only if the UK drops its demands for a ‘fundamental’ change of approach. Meanwhile, the House of Lords have voted to amend the government’s Internal Market Bill, which would have breached international law. (Financial Times)

‘White House and Democrats keep stimulus talks alive’. Although a pre-election deal seems unlikely, the White House and Democrats continue to string along markets with news of progress towards an agreement on the new US fiscal stimulus package. Officials agreed to speak again today after yesterday’s call between Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi. Any deal is expected to be worth up to $2tn and will include a new round of direct payments to most US families, funding for jobless benefits and small business relief. (Financial Times)

Today's events, rates, and data 

  • This morning, the Dollar Index hit its lowest level in a month, as optimistic investors sought out riskier currencies, like the Chinese Yuan, which hit a two-year high. The prospect of more US government borrowing took 10-year Treasury yields to a four-month high, along with Equity Index Futures in the US and Europe, which also gained.

Today's events

UK CPI: 0.5% vs 0.2% previously
MPC Member Ramsden Speaks: 1.10pm
Canada CPI: 1.30pm
Canada Core Retail Sales: 1.30pm
Canada Retail Sales: 1.30pm

Interbank rates:

GBP/USD: 1.2990
GBP/EUR: 1.0960
EUR/USD: 1.1855
USD/CAD: 1.3100