Still no progress

Today’s news headlines:

‘Brexit talks set to finish without agreement as deadline looms’. UK and EU officials are still far apart on crucial issues as the deadline for extending the Brexit transition period looms. A lack of progress could force British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen to intervene directly when further talks are held later this month. EU officials still claim that Britain’s approach is not realistic and that the UK cannot have full sovereignty and full access to the single market at the same time. (Bloomberg) 

‘ECB goes all out with 600 billion Euro increase in bond buying’. Facing an unprecedented contraction, the European Central Bank responded yesterday with a bigger-than-expected increase in its bond-buying program. Italian bonds rallied on the news, as did the Euro, while ECB President Christine Lagarde announced significant downward revisions for growth and inflation in the region. Meanwhile, Germany declared a new €130bn fiscal package late Wednesday, the latest in a raft of national programs to combat the downturn. (Bloomberg)

Today's events, rates, and data 

  • In another big win for risk sentiment, most Asian stocks rose overnight along with US and European equity futures, while Brent Crude Oil rebounded back over $40 a barrel. The Euro surged higher yesterday following the ECB’s announcement of a large increase in its asset-purchase program.

Today's events

UK Gfk Consumer Confidence: -36 vs -34 previously
German Factory Orders: -25.8% vs -15% previously
Canadian Employment Change: 1.30pm
Canadian Unemployment Rate: 1.30pm
US Non-Farm Payrolls: 1.30pm
US Average Hourly Earnings: 1.30pm
US Unemployment Rate: 1.30pm 

Interbank rates:

GBP/USD: 1.2655
GBP/EUR: 1.1131
EUR/USD: 1.1370
USD/CAD: 1.3478