The dollar is coming under pressure again; markets are finally waking up to the fact that a stimulus deal before 2021 is unlikely; 10-year Treasury yields have been trading in a narrow range for months
The quiet US data week continues; Ireland broke from the pattern of how other European countries are tightening mobility rules; Hungary is expected to keep the base rate steady at 0.60%.
Japan reported September convenience store sales; dovish RBA remains dovish; RBNZ Governor Orr tried to out-dove the RBA
The dollar bounce is running out of steam; Trump is still hoping for a stimulus deal; we think more stimulus is coming but on the other side of the election
The main event is September US retail sales; BOC announced some changes to its financial market support programs; it is coming under criticism from the opposition Conservatives
With the EU summit wrapping up with no Brexit breakthrough, we await the UK decision on whether to walk away or not; corporate credit risk in Europe has ticked higher this week but remains very subdued overall
The US Vice Presidential debate was a comparatively cordial affair, though the impact on the election is likely to be limited; polls continue to move in favor of Biden, including in swing states
The weak dollar narrative under a Democratic sweep continues to play out; the outlook for fiscal stimulus is as cloudy as ever; FOMC minutes contained no big surprises
Weekly jobless claims will be reported; like last week, there will be a quirk to this week’s initial claims; Canada reports September housing starts
Markets have shrugged off the latest UK Brexit ultimatum; rising infection rates are driving government in Europe to re-impose restrictions; sovereign spreads of EU periphery countries have been trending lower.
Virus-related headlines continue to worsen, at least in terms of infection rates; the dollar has been unable to break any new ground
President Trump called off stimulus talks with House Speaker Pelosi until after the election; the decision will have wide-ranging implications; US House published a series of proposals to curb the power of big tech
FOMC minutes will be released; this is another quiet day in terms of US data; Canada reports September Ivey PMI; Peru is expected to keep rates steady at 0.25%.
Industrial data from Germany and Spain for August came in decidedly downbeat; Poland is expected to keep rates steady at 0.10%