Glimmer of hope

Today’s news headlines:

‘UK prepared to rewrite lawbreaking Brexit Bill to get EU deal’. Officials in Boris Johnson’s government are prepared to make amendments to the controversial internal market bill, which might salvage faltering trade talks with the EU. On Friday, the PM announced that he would be moving to prepare the UK to leave the single market by the end of the year without a deal, unless the bloc changed its stance. In an interview on Sunday, Cabinet Office Minister Michael Gove said that the door was ‘ajar’ for negotiations, but that he was less hopeful that a deal could be reached than he had been in recent weeks. (Bloomberg)

‘Chinese economy expands 4.9% in third quarter’. Quarter three GDP data out of China might have missed economists' expectations, but came in well ahead of Q2’s 3.2% increase on the back of stronger retail sales and industrial production. The good news is that growth, which was started by the state-backed industrial boom, has now moved its way into the average consumer. The Chinese economy’s strong showing comes as a benefit from the nation’s containment of the virus, with new cases remaining low over recent months. China is likely to be the only major economy to register positive growth in 2020. (Financial Times)

Today's events, rates, and data 

  • Asian currencies moved higher into Monday following positive Chinese growth data, but the US Dollar remains supported by the uncertainty facing most of the Western world. US equity futures begin the day in positive territory on an upbeat risk environment, although UK futures stalled after the Pound strengthened. The Kiwi Dollar rose after Jacinda Ardern’s resounding election win.

Today's events

China GDP: 4.9% vs 3.2% previously
China Retail Sales: 3.3% vs 0.5% previously
China Industrial Production: 6.9% vs 5.6% previously
US Fed Chair Powell Speaks: 1.00pm
ECB President Lagarde Speaks: 1.45pm
Bank of Canada Business Outlook Survey: 3.30pm

Interbank rates:

GBP/USD: 1.2945
GBP/EUR: 1.1060
EUR/USD: 1.1705
USD/CAD: 1.3180