The fifth round of Brexit negotiations have drawn to a close with little progress being made, causing the pound to decline. Donald Tusk, President of the European Council has mentioned December looks a more likely date for the talks to progress to trade, not the October deadline the UK was hoping for. The European Chief Negotiator, Michel Barnier also announced the Brexit talks have reached a deadlock. The EU Country leaders will be meeting at the EU Summit on 19th October to discuss whether enough has been done to progress the talks to trade.
Across the pond, the Fed minutes from the September meeting were released last night. The greenback declined as the minutes showed the FOMC members are still unsure whether these forces keeping inflation low are persistent or temporary. The worry they could be persistent could risk the Fed holding off if the upcoming inflation data doesn’t improve. However it was noted in the minutes that another hike was likely to be warranted.
The US will become the focus for this afternoon with the release of the PPI figure and weekly unemployment claims, expected to post 0.4% and 251K. Two FOMC members will be speaking with also be speaking. Jerome Powell will be delivering a speech titled ‘prospects for emerging market economies in a normalising global economy.’ Lael Brainard will be participating in a panel discussion about monetary policy at the Peterson Institute for International Economics alongside ECB President Mario Draghi.