Pack your bags

Today’s news headlines:

‘US orders China to close its Houston consulate’. Yesterday, the US ordered Chinese officials to leave the Houston consulate, by Friday, over spying concerns, risking another escalation between the two nations. The Chinese government warned that it would retaliate unless the US backtracked on its decision. In video footage, consulate staff appeared to be burning documents in the courtyard of the building following claims that Chinese hackers have targeted American companies researching a coronavirus vaccine. (Financial Times)

‘Brussels to warn time is running out for Brexit deal’. The European Union will warn British officials that only several weeks remain for the two sides to reach a trade agreement if it's to be legally operational by the end of this year. Officials maintain that the process is not on the verge of a breakdown. Still, clearly, a lack of tangible progress is being made, to the frustration of EU chief negotiator Michel Barnier and his UK counterpart David Frost. Meanwhile, the EU has pencilled in an October 15th summit to approve any agreement that can be reached. (Financial Times)

Today's events, rates, and data 

  • Markets struggled for direction overnight as US and European equity futures traded flat amid uncertainty over the future relationship between the US and China. The Euro remained around a 21-month high against the US Dollar, while the Pound inched closer towards June’s highs of 1.2813 against the Greenback.

Today's events

German Gfk Consumer Climate: -0.3 vs -9.4 previously
Bank of England Monetary Policy Committee Member Johnathan Haskel Speaks: 12.00pm
US Weekly Jobless Claims: 1.30pm
US CB Leading Index: 3.00pm

Interbank rates:

GBP/USD: 1.2745
GBP/EUR: 1.0994
EUR/USD: 1.1592
USD/CAD: 1.3385