Bollettino Informativo - 23rd October 2020
After strengthening on the positive news that trade talks with the EU are restarting, it was time for sterling to take a breather in London trading. BoE economist Haldane said, although the Bank was studying negative interest rates that didn’t mean they were going to use them. He was followed by BoE Governor Bailey who said, after the crisis the UK economy will need equity investment at a level not seen in normal times.
Chancellor Sunak announced new levels of support for the differing levels of coronavirus lockdown.
Today we have retail sales, first reading services and manufacturing PMI’s for release. We expect a flat reading for retail sales and 53.4 for services PMI. A reduction on last month's 56.1.
The dollar made a slight recovery against the euro as the market mulled over news that there had been some possible interference in the US election by Russia and Iran. Coronavirus infection levels continued to rise at levels higher than the first wave. Thankfully, the mortality rate is now much lower. First reading Services and Manufacturing PMI are released today.
News that there had been some interference in the US election by Russia and Iran gave the markets an excuse to buy dollars in European hours. The stimulus talks are also ongoing but may well only get a vote in Congress after the election. The market was really waiting for the presidential TV debate and when it came, it appeared to be honours. Even with both candidates alleging that the other had secretly taken money from foreign interests. 40 million voters have already cast their ballots for the election on November 3rd.
In a quiet trading day, the AUD was not disposed to move very much.