Here is what you need to know on Monday, October 7:
- Market sentiment is somewhat damp after reports that China intends to limit the scope of a trade deal with the US. Chinese Vice Premier Liu He will lead a delegation to Washington later this week. AUD/USD is bearing the brunt of the fall. Other currency pairs are little-changed as a new week begins.
- Brexit: European leaders have expressed pessimism about reaching an agreement with the UK by the EU Summit on October 17. French President Emmanuel Macron gave Britain until Friday to bring new proposals. Chief EU Negotiator Michel Barnier said the responsibility for a no-deal is Johnson’s. The bloc’s officials see Prime Minister Boris Johnson’s plan as insufficient, especially as it fails to guarantee open borders in Ireland. In the meantime, the UK PM insisted the country will leave the EU on October 31, come what may. Negotiations resume today after Brussels refused to hold talks over the weekend.
- Impeachment inquiry: A second whistleblower has reportedly come forward to provide information against President Donald Trump. The law firm representing the first whistleblower says it is in talks with additional people with data. House Democrats are set to hold more closed-door hearings during the week. Opinion polls have shown a minor shift against the president.
- Jerome Powell, Chair of the Federal Reserve, said that the US economy is in a good place in a speech on Friday. His remarks came after the US Non-Farm Payrolls report for September showed a mixed picture with a satisfactory increase in jobs, disappointing wage growth, and a drop in the unemployment and underemployment rates. Powell will make another public appearance today, but he will likely refrain from commenting on monetary policy.
- German Factory Orders and euro-zone Sentix Investor Confidence may be of interest in an otherwise light day on the economic calendar.
- Cryptocurrencies have been on the back foot with Bitcoin slipping below $8,000.
- Oil prices have failed to recover after the massive sell-off last week and WTI remains below $53.
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