FX Update: GBP concern notches higher. Market prices RBA closer to zero.
Sterling concern on the Brexit talks status lurched a few notches higher as the UK refuses to sit down for renewed talks until the EU makes concessions. Elsewhere, dovish jawboning overnight from an RBA official as the market shifting its expectations lower for the rate cut at the November 3 RBA meeting. Elsewhere, today is the deadline for US House Speaker Pelosi on pre-election US stimulus talks.
Macro Digest: Forget the clean-sweep
As someone who believed that Biden could do a clean sweep six week ago it may seem odd that I now, again, have changed my position. I still have a high conviction on a Biden win, but a far lower conviction that the Democrats have a chance of taking a Senate (so important as Congress must have both houses on the side of the presidency for any chance of major tax and regulatory reform).
Market Quick Take - October 20, 2020
Sentiment dipped again yesterday after an attempt at a positive start, with US equities closing near the lows of the day and at their lowest level in more than a week. Stimulus talks between House Speaker Pelosi and Treasury Secretary Mnuchin are said to be ongoing after Pelosi declared a negotiation deadline for today.