Main exchange rates in tight ranges

The main exchange rates continue to trade in relatively narrow ranges, as has been the case all week, with the euro hovering a touch above $1.1850 against the dollar this morning and sterling still trading in and around $1.3250 against the US currency, leaving the euro-pound exchange rate at around 89.5p (the range for this pair this week has been between 89p and 90p)

Stocks had a mixed time of it yesterday with European equities losing some ground but US indices closing with modest gains.  They may struggle today after the US Treasury announced that some support schemes for businesses and state/local governments, operated jointly with the Fed, would terminate at the end of this year as planned, though there was an expectation that they would be extended

ECB member De Cos says “the recalibration of monetary policy instruments (in December) in response to this second wave should at least focus or include further recourse toward our PEPP (emergency bond purchases) and also further recourse toward our TLTROs (liquidity provision to commercial banks)”, adding that while a cut in the deposit rate has not been ruled out, the room to actually lower it further is limited

Retail sales in the UK rose for a sixth consecutive month in October, increasing by 1.2% in volume terms from September to leave them almost 6% higher than in the corresponding month in 2019

Data due today includes consumer confidence in the Euro Area