The uncertainties that lie ahead

Today’s news headlines:

  • ‘Trump says U.S. must reopen even if more Americans get sick, die’ – Despite a spike in US coronavirus related deaths, a government task force to respond to the pandemic, led by vice-president Mike Pence, could be wound down as early as the end of the month. Meanwhile, President Trump is adamant that the US needs to begin to reopen immediately, even if it causes more infections and deaths. In a visit to Phoenix, the President expressed frustration with the lockdown that has plunged the US into recession and caused millions of job losses. (Bloomberg)

  • ‘UK business activity drops to lowest level on record’ – Analysts are predicting a more severe downturn than anything seen in living memory after the latest measure of services and manufacturing activity reported the lowest figure on record. April’s PMI reading was just 13.8, placing UK activity into severe contraction, whilst many firms report that their business operations were unlikely to return to normal in the near-term. (Financial Times)

Today's events, rates, and data 

  • Wall Street closed higher yesterday after Brent Crude breached $30 a barrel for the first time since mid-April. In Europe, the Euro was sold off along with Italian bonds after the German constitutional court called on the European Central Bank to justify the scale of its bond-buying programme. Overnight, Asian equities were broadly higher along with the US Dollar.

Today's events

German Factory Orders                              -15.6% vs -1.2% last month
Eurozone Final Services PMI                       9.00am
Eurozone Retail Sales                                 10.00am
US ADP Non-Farm Employment Change    1.15pm

Interbank rates:

GBPUSD: 1.2435

GBPEUR: 1.1495

EURUSD: 1.0820