Heading off a cliff

Today’s news headlines:

‘Brexit negotiators turn up heat as UK deadline approaches’. Boris Johnson’s deadline for abandoning the UK-EU trade negotiations is fast approaching, with little positivity emerging from current talks. Neither side has offered enough concessions, with the EU unwilling to budge on its hardline fisheries stance, and the UK failing to provide assurances on state subsidies. Boris Johnson and Ursula von der Leyen are due to discuss the current state of the negotiations on a video call later today. Meanwhile, Michel Barnier said that not enough progress has been made to enter the final intensive phase of negotiations, according to officials close to the talks. (Bloomberg)

‘EU weighs when to hit US products with tariffs approved by WTO’. The US is set to be targeted with more trade tariffs, this time by the nations of the European Union after it gained permission from the World Trade Organisation. The EU can hit $4bn of US goods with extra costs, but are likely to wait until after November’s election. The US was previously awarded $7.5bn in tariffs against the EU after the Boeing-Airbus dispute, so the EU will likely use its award as a bargaining chip to come to a settlement agreement. (Bloomberg)

Today's events, rates, and data 

  • US and European equity futures ticked higher and the US Dollar is holding on to yesterday’s gains as investors look to keep their safe-haven assets until more concrete signs of positivity emerge. The Euro and Pound are likely to come under renewed pressure as new cases of the coronavirus continue to rise and Brexit negotiators make little progress.

Today's events

Japan Industrial Production: 1.0% vs 1.7% previously
Eurozone Industrial Production: 10.00am
US PPI and Core PPI: 1.30pm
MPC Member Andy Haldane Speaks: 2.00pm
FOMC Member Richard Clarida Speaks: 2.00pm
FOMC Member Randal Quarles Speaks: 3.30pm & 8.00pm
RBA Governor Philip Lowe Speaks: 10.45pm

Interbank rates:

GBP/USD: 1.2895
GBP/EUR: 1.0980
EUR/USD: 1.1745
USD/CAD: 1.3135