Bubble, bubble, toil and trouble

Today’s news headlines:

‘Pompeo castigates Bolton as a "traitor"'. Following the advanced release of the former US National Security Advisor John Bolton’s tell-all book—which catalogued a series of Trump errors, misjudgements and outright scandals—the administration is hitting back. US Secretary of State, Michael Pompeo, who was quoted in the book criticising the President has gone to the press to call Bolton a ‘traitor’. (Financial Times)

‘Global stocks slip on rising coronavirus cases’. Markets fell on reports that the relaxation of lockdown in the US has resulted in one of the largest one-day jumps in infection cases. On Thursday, 27,000 new cases were recorded due to significant increases in California, Florida, Arizona, and South Carolina. (Financial Times)

Today's events, rates, and data 

  • Following some risk aversion on Wednesday, markets finished more or less flat yesterday. Despite all of the geopolitical headlines this morning, the day has started with general upward momentum. With little data remaining today, the focus is on what news media have dubbed ‘witching Friday’ which is supposed to see an increase of volatility surrounding the various new risks surfacing.

UK GfK Consumer Confidence: -30 vs -36 last month
Australian Retail Sales: -0.2% vs -0.2% last month
UK Retail Sales: 12% vs -18% last month
Canadian Retail Sales: 1:30PM
US FOMC Member Randal Quarles Speaking: 5:00PM
US Fed Chairman Powell Speaking: 6:00PM

Interbank rates:

GBP/USD – 1.2425
GBP/EUR – 1.1090
EUR/USD – 1.1200
USD/CAD – 1.3585