Author : Brett Gordon
Trade talks progress between U.S. and China and expectations are, the Reserve Bank of Australia (RBA) will pass on a November rate cut have driven the Aussie higher since the first of October, however, worries over a slowdown in the Australian economy and forecasts calling for the cash market rate to fall to 0.50% early next year could trigger renewed selling pressure.
EU leaders will now consider Britain’s request for a delay to Brexit with expectations for a three-month extension. PM Boris Johnson is considering another attempt to call a general election in hopes of gaining a majority in government. The pound holds steady as risk of a no-deal Brexit has dropped.
The focus now turns to Draghi`s announcement, The EUR dipped ahead of tonight’s European Central Bank rate announcement. Expectations are for policy to remain unchanged at President Mario Draghi’s last meeting, following his decision to cut rates last month and restart the Quantitative Easing program, at EUR20 billion per month which will start on 1st November. This is also the day that Christine Lagarde takes helm. The meeting will likely focus on defending his legacy, emphasizing that he has always done “whatever it takes” to defend the common currency. Consumer confidence in the EU released overnight came in much worse than forecasted, missing expectations by over 1%. Manufacturing data out of the EU will be released at 9pm tonight ahead of the ECB meeting.
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