The Asian decline

Today’s news headlines:

  • ‘Rishi Sunak promises £350bn emergency rescue package for business’. Late yesterday, in response to the intensification of the coronavirus that has so buffeted small business, the Chancellor of the Exchequer announced a further £330bn of state loan guarantees including grants of up to £25,000 for retailers and pubs. (Financial Times)

  • ‘Global rally loses steam as Asian stocks fall’. The traditional confidence that comes from central bank support hasn’t had the same impact under coronavirus conditions. The fall off of Asian equity markets is thrusting a spotlight on missing fiscal policy measures to support businesses. Market participants remain sceptical about holding positions which ironically prevents stabilisation in valuations. (Financial Times)

Today's events, rates, and data 

  • After seven straight sessions of Dollar appreciation and Pound selling, the pace seems to be slowing. Unfortunately, heading into the market open, the sea of red coming out of the Asian sessions bodes ill for the rest of the day. The appetite for the Dollar particularly remains given how choppy markets have been. Oil continues to decline, seemingly at its lowest level since 2003 at $25.83 per barrel on declining demand expectations.

Today's events

EUR: Year-on-year Consumer Price Index - 10:00AM
CAD: Year-on-year Consumer Price Index - 12:30PM
AUD: Employment Change - 12:30AM

Interbank rates:

GBPUSD – 1.2030
GBPEUR – 1.0960
EURUSD – 1.0980