Hell no, we won't go

Today’s news headlines:

‘France and Netherlands join forces to back EU move against tech giants’. In a surprise move, two traditionally different EU states, France and the Netherlands, have co-signed a position paper which might lead to regulation that breaks up large tech like Apple or Google. The point of the paper is to force greater competition into a market that is owned by the biggest players and hopefully leave the consumer better off. (Financial Times)

‘Boris Johnson’s virus strategy threatened by regional revolt’. Regional leaders are resisting Boris Johnson’s attempt to push the burden of lockdown on local communities, which may eventually force him to opt for a full nationwide lockdown instead. In Manchester, the Mayor Andy Burnham, said if Johnson forces Tier 3 lockdown measures, he would consider a legal challenge. Burnham believes that the measure would do little to curb virus rates, but could do considerable harm to 100,000 employees in restaurants, pubs, hair salons, and the like. (Financial Times)

Today's events, rates, and data 

  • A bit of a whipsaw for the Pound yesterday but we are more or less back to where we started the week. GBP/USD is trading at or about the 50-day moving average. We remain in the dark about Brexit negotiations after the conclusion of a two-day summit, but news sources hint that the end of October is the real deadline on the outstanding fisheries issue. We would suggest keeping an eye on the Credit Conditions Survey today and the numerous central bankers’ speeches, which could hint at further central bank action. 

Today's events

AU  Employment Change: -29.5K  vs 129.1K last month
AU  Unemployment Rate: 6.9% vs 6.8% last month
CN  CPI y/y: 1.7% vs 2.4% last month
UK  BoE Credit Conditions Survey: 9:30am
CA  ADP Non-Farm Employment Change: 1:30pm
US  Philly Fed Manufacturing Index: 1:30pm
US  Empire State Manufacturing Index: 1:30pm
UK  MPC Member Cunliffe Speaking: 2:00pm
CA  Gov Council Member Lane Speaking: 2:45pm
US  FOMC Member Kaplan Speaking: 4:00pm
US  FOMC Member Quarles Speaking: 4:00pm
EU  ECB Lagarde Speaking: 5:00pm

Interbank rates:

GBP/USD – 1.3000
GBP/EUR – 1.1070
EUR/USD – 1.1735
USD/CAD – 1.3150