Worldwide coronavirus cases surpass 34.4 million with over 1,022,000 official deaths.
Risk sentiment improved overnight with the outlook around a coronavirus stimulus package nearing an agreement from the US government. Certainly, from earlier in the week things have improved contributing to rebound in mood with equities and risk products receiving support. We’re not quite out of the woods yet but investors are feeling a lot more positive. For months the senate has been against further economic relief, US Senate leader McConnell has said that if Pelosi and Mnuchin agree on a deal they will “take a look” with both Republicans and Democrats wanting to lock in a relief deal prior to the US Elections. Price action has seen a drop in buyers exiting the safe haven greenback putting it under pressure. This has been the main item driving global currencies over the week.
Key Points:
• ANZ Consumer Confidence Index for September falls from 100.2 to 100.0 with additional lockdowns recently this has led to decreased spending
• Fed’s Mester expects US unemployment to end the year around 7-8% range but reiterated the economy was still in a “deep hole” dependant on coronavirus
• Japan’s government has started to work on a new coronavirus stimulus package to be ready by year end but submitted to parliament in January 2021
• ECB’s Lagarde has indicated the ECB will add more easing if necessary
• UK Prime Minister Boris Johnson is set to announce measures to assist the unemployed retain jobs