Promises, Threats, Failure and Expectation.

COP26 kicked off yesterday in Glasgow with the 1st agreement being reached. World leaders have promised to end deforestation by 2030. More than 100 nations including Brazil, Russia and Indonesia have agreed to the deal.

Tensions remain high between France and Britain, President Macron has said that the nation will delay retaliatory measures against the UK. The French had been threatening to block British boats from landing catches in their ports from midnight. Brexit issues are persisting and getting less press attention than previously, however they will more than likely weigh on sterling as and when they are at the forefront of peoples minds.

Yet another energy firm in the UK, Bluegreen has gone bust due to the soaring cost of wholesale energy prices. Fuel uncertainty is a real concern for many in the UK, not having foresight or clarity of what a households heating bills will be through the winter, this will have a material impact on consumer confidence and ultimately Christmas retails sales. In the UK, Christmas retail sales are the most highly anticipated data release of the year, poor data can have serious negative consequences for sterling.

Thursday and Friday remain the main focus of the week with the Bank of England rate announcement, bond markets are pricing in a 55% chance of a 0.25% rate hike this month. As with the 1st Friday of every month we have the Non-Farm Payrolls numbers out of the US, job creation is a leading indicator of consumer spending which accounts for the majority of the overall economy.

Economic Calendar

09:00EUR Final Manufacturing PMI58.558.5
12:30CAD Building Permits (M/M)2.2%-2.1%
21:30AUD AIG Construction Index53.3

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.