Backpedaling

Today’s news headlines:

‘UK abandons hope of US trade deal by end of year’. Sets of officials on both sides have conceded that a US-UK trade deal will not be possible ahead of this November’s US Presidential election. In addition to blaming Covid-19 for the slow progress, the two sides have spent time grappling over contentious issues like allowing US agriculture products into the UK market. Back in September, government officials said a deal would be wrapped up by July 2020, which would have been hailed as an early win from leaving the EU. (Financial Times)

‘Trump reboots virus briefings with warning and a shift in tone’. The US President delivered a stark warning over a surge in coronavirus cases even as his administration tried to reassure Americans that it has the crisis under control. Trump admitted that: ‘It will probably, unfortunately, get worse before it gets better’ and urged all to wear masks and take caution. Meanwhile, new cases are continuing to rise rapidly in Southern and Western states after Governors mistakenly hurried to reopen their economies. (Bloomberg)

Today's events, rates, and data 

• Global stocks halted following President Trump’s warning on the spread of the pandemic in the US after being initially boosted by news that EU leaders had agreed to the €750bn coronavirus recovery fund. That news took the Euro to around an 18-month high against the US Dollar. The Greenback also suffered over concerns that Republicans and Democrats are struggling to reach a consensus on the next round of US stimulus measures.

Today's events

Aussie Retail Sales: 2.4% vs 16.9% previously
Canadian Consumer Price Inflation: 1.30pm
US Crude Oil Inventories: 3.30pm

Interbank rates:

GBP/USD: 1.2720
GBP/EUR: 1.1015
EUR/USD: 1.1545
USD/CAD: 1.3440