Knife-edge Brexit talks continue with rumours that the UK will walk away from the negotiating table.
Focus this week remains on the protracted Brexit talks, described as being on a ‘knife-edge’ by Irish Taoiseach Micheál Martin.
Reports early this morning have suggested that PM Johnson will order Lord Frost to walk away from talks with his EU counterpart. This comes ahead of the contentious ‘UK Internal Market Bill’ returning to the house of commons, which is likely to be pushed through by the government despite the House of Lords voting against it. Should the bill be passed as expected, it will undoubtedly cause further tension if the talks continue.
In the US, the economic recovery has come into focus after soft non-farm payrolls data suggested that the third wave of COVID-19 infections are starting to take their toll. The dollar is trading near two and a half year lows against sterling. In a note, to clients, National bank of Australia is quoted as saying “Further dollar depreciation is baked in the cake.”
Chicago Federal Reserve Bank President Charles Evans stated on Friday, that the Federal Reserve are unlikely to take any action until the vaccine has been rolled out to gauge the economic trajectory.
Talks remain ongoing for a bipartisan relief package to stimulate the economy which are rumoured to be worth $908bn. This is a compromise between the Republican’s initial proposal of $500m and the Democrat’s $2.2tn.
|20:00||USD Consumer Credit (M/M)(OCT)||17.6B||16.2B|