Trump's offensive

Today’s news headlines:

‘Trump defends handling of pandemic on first night of convention’. Last night, the Trump administration took to the stage to communicate its election race platform. While the Democrats have painted Donald Trump as ineffective at dealing with the coronavirus epidemic, the incumbent and his allies were quick to blame China for the disease, and suggested Senator Biden was in league with radical leftists and soft on crime. Perhaps the most interesting reference was to say the police protesters—which began protesting after the slaying of George Floyd—represented Biden's party. (Financial Times)

‘Why UK coronavirus deaths are falling even as cases are rising’. Even though infection rates have risen following a loosening for quarantine procedures, the corresponding death rate seems to be holding near record lows. Three reasons are cited for this change: Tests are more widely available and are conducted on a broader swath of patients, the infected age demographic has shifted from the elderly towards working-age adults, and treatment of seriously ill patients has improved by better identification of those who need to go to hospital and administration of a steroid known to cut mortality in hospital patients. (Financial Times) 

Today's events, rates, and data 

  • Last Friday's data broadly showed a more positive picture of the UK and US, but a worsening picture of the EU. Since economic data was almost entirely absent yesterday, it stands to reason that the markets were rather inactive and we’ve seen a small easing in Dollar selling pressure, which was pushing the Dollar index to new lows last week. Activity should begin to pick up as we head into the end of the month and as we leave perennially slow August behind.

Today's events

DE  German IFO Business Climate: 9:00 AM
GB  CBI Realised Sales: 11:00 AM
US  CB Consumer Confidence: 3:00 PM
US  Richmond Manufacturing Index: 3:00 PM

Interbank rates:

GBPUSD – 1.3085
GBPEUR – 1.1075
EURUSD – 1.1815
USDCAD – 1.3210