Sterling loses some ground
The pound has lost some ground against both the euro and the dollar to grade at 91p and $1.29 respectively this morning, while the single currency is also on the back foot a bit against the dollar trading at closer to $1.17 from over $1.18 yesterday morning. Core bond yields edged down again yesterday as equities were under pressure with stocks in both Europe and the US closing lower on the day
Ahead of the two-day European Council meeting starting tomorrow, Germany’s Europe Minister says “time is running out, and we expect substantial progress by…the U.K. in key areas”, while UK Prime Minister Boris Johnson has reiterated that the UK is “ready and willing” to proceed without a deal. More positively, Johnson will hold talks with the President of European Commission, Ursula von der Leyen, later today
ECB member Knot says “it is clear that (the renewed surge in the virus) will flatten the (economic) recovery, but we need time before we can interpret this” and decide on what further policy action is needed
The annual rate of CPI inflation in the US ticked up to 1.4% in September from 1.3% in August, while the core, or underlying, rate held steady at 1.7%
Budget 2021 here at home contained a number of measure to help businesses and individuals hard hit by COVID-19 including cash payments to firms forced to close because of restrictions in place, a reduction in VAT for the hospitality sector, and an extension of the wage subsidy scheme to the end of 2021
Data due today includes industrial production in the Euro Area and residential property prices here at home