Fresh stimulus and the Bolton book

Today’s news headlines:

‘Bank of England forecast to unleash at least £100bn extra stimulus’. The consensus from most economists is for the BoE to increase its asset purchase programme by at least £100bn while leaving benchmark interest rates at 0.1% following the latest monetary policy meeting. The renewed stimulus to help stabilise the economy is expected ahead of the BoE’s review on whether to introduce negative interest rates later this year. (Financial Times)

‘Donald Trump asked Xi Jinping for election help, John Bolton claims’. Former US National Security Advisor, John Bolton, gave a damning portrayal of President Trump’s foreign policy conduct in a new book. Trump urged Chinese President Xi Jinping to buy more US agricultural goods to help him win re-election, but Bolton was blocked from using comments from Trump that he would tone down criticism of China’s handling of Hong Kong if it helped revive trade negotiations. The President has slammed Mr Bolton’s claims, and his administration has tried to stop the publishing of the book. (Financial Times)

Today's events, rates, and data 

  • Virus concerns in the US and China dominated last night’s risk-off move after a rise in cases in the southern US states and a flare-up of cases in Beijing. US and European equity futures are in the red to begin the day while the safe-havens of the Japanese Yen and US Treasuries have climbed.

Today's events

Australia Employment Change: -227.7k vs -607.4k previously
Australia Unemployment Rate: 7.1% vs 6.4% previously
Swiss National Bank Monetary Policy Assessment: 8.30am
Swiss National Bank Press Conference: 8.30am
BoE MPC Official Bank Rate: 12.00pm
BoE Monetary Policy Summary: 12.00pm
BoE Asset Purchase Facility: 12.00pm
US Weekly Jobless Claims: 1.30pm
US Philly Fed Manufacturing Index: 1.30pm

Interbank rates:

GBP/USD: 1.2535
GBP/EUR: 1.1138
EUR/USD: 1.1255
USD/CAD: 1.3555