Six-week trade deal

Today’s news headlines:

‘Europe leaves $2 trillion on the table in virus recession fight’. Less than 15% of funds made available by government loan guarantees have been used across Europe’s largest economies, leaving $2 trillion untouched thus far. According to President of Eurochambres, a group representing more than 20 million companies, 'deployment has been slow and businesses in need are not able to benefit from them'. The challenges risk severely slowing the recovery from the economic crisis caused by the pandemic. (Bloomberg)

‘Japan rushes UK to agree first post-Brexit trade deal’. Boris Johnson’s government has just six weeks to form a post-Brexit trade deal with Japan. Tokyo’s chief negotiator warned both parties must ‘limit their ambitions’ in what could reveal Johnson’s tactics in time-pressured negotiations ahead of ongoing trade negotiations with the EU. So far, both sides have agreed to base the deal on the existing EU-Japan trade relationship, while the UK has added further goals including reduced Japanese tariffs and ‘ambitious commitment on market access’. (Financial Times)

Today's events, rates, and data 

  • Shaky price action continues this week in equities as global markets swing between green and red. European and US equity futures ticked higher overnight along with bond yields while oil prices fell.

UK and Eurozone PMI's: 8:00am – 9:30am
US PMI's: 1:30pm
Fed’s James Bullard speaks at 6:00pm

Interbank rates:

GBP/USD: 1.2490
GBP/EUR: 1.1070
EUR/USD: 1.1290
USD/CAD: 1.3520