Trump's trillions

Today’s news headlines:

‘Trump team weighs $1 trillion for infrastructure to spur economy’. The Trump administration is looking to push through a broader package of infrastructure spending in a bid to bring the stricken US economy back to life. The preliminary version sees most of the $1tn set aside for traditional work like roads and bridges, along with additional funds for rural broadband and the build-out of wireless 5G. (Bloomberg)

‘Boris Johnson and EU pledge renewed vigour in trade talks’. Yesterday, the UK’s Prime Minister set a deadline that the UK and EU trade deal must be sealed by the end of July as optimism develops that a post-Brexit agreement might still be possible. Despite tough talk between the two sides, leaders have promised to inject new momentum into negotiations. Johnson’s claim that the two sides aren’t actually that far apart has bettered the mood in Brussels, which recognises Johnson’s commitment to breaking the deadlock. (Financial Times)
 

Today's events, rates, and data 

  • Global stocks rallied after the Federal Reserve said that it would begin buying up US corporate debt amid concerns of a resurgence in coronavirus cases. US and European equity futures are in the green this morning, while the US Dollar is lower against a basket of riskier currencies. The yield on US 10-year treasuries—a haven during uncertain times—rose three basis points.

Today's events

UK Claimant Count Change: 528k vs 1,032k previously
UK Unemployment Rate: 3.9% vs 3.9% previously
UK Average Earnings Index: 1.0% vs 2.3% previously
German ZEW Economic Sentiment: 10.00am
US Retail and Core Retail Sales: 1.30pm
Fed Chair Jerome Powell Testifies: 3.00pm

Interbank rates:

GBP/USD: 1.2650
GBP/EUR: 1.1155
EUR/USD: 1.1341
USD/CAD: 1.3550