Markets
GBP
Sterling is well bid against the dollar but weaker than the euro in the early morning trade. France’s interior minister has issued a comprehensive rebuff to a series of initiatives proposed by UK home secretary Priti Patel to combat cross-Channel clandestine migration. In a letter, Gérald Darmanin rejected proposals for a joint Franco-British command centre to deal with the problem; described plans for a joint intelligence unit on smuggling gangs as “premature”; rejected the possibility of a bilateral deal on migrant returns; and warned of the dangers of forcing migrant boats back towards the French coast. The letter marked a setback for Patel’s efforts to press France into taking new action to prevent clandestine crossings.
EUR
The euro is stronger versus most majors this morning. Poland will need to prove it is no longer defying the European court over judicial independence if it is to start receiving EU recovery money, the justice commissioner has warned, as he called for fines that put genuine pressure on Warsaw to change course. Didier Reynders said in an interview it was logical that the EU would not wish to disburse any of the €36bn Poland has applied for under the bloc’s Covid-19 recovery package, which is awaiting the EC’s approval, without a “real change” to its disciplinary regime for judges. After the commission asked the European Court of Justice to fine Poland for ignoring its decisions, Reynders added the penalties should be as high as €1m a day, although he stressed the decision was up to the court.
USD
The dollar is lower than most majors overnight. A law that seeks to clamp down on Amazon’s use of productivity quotas has been passed by California’s state senate, paving the way for the first regulation of its kind in the US. Assembly Bill 701 is aimed at all companies using warehouse labour, but legislators have targeted Amazon in particular, highlighting the company’s outsized injury rate when compared to similar workplaces. The law will demand all warehouse operators that use quotas to provide detailed descriptions of any targets that workers are expected to meet — as well as the repercussions for missing them. These quotas will have to be provided to employees and government agencies.
Ballinger & Co. Morning Report– 09th September 2021
Today’s Rates
GBP>EUR – 1.1670
GBP>USD – 1.3809
EUR>USD – 1.1831
GBP>CAD – 1.7526
GBP>AUD – 1.8706
GBP>SEK – 11.900
GBP>AED – 5.0710
GBP>HKD – 10.738
GBP>ZAR – 19.512
GBP>CHF – 1.2685
Today’s Calendar
· EUR ECB Interest Rate Decision
· EUR ECB Monetary Policy Decision Statement
· EUR ECB Deposit Rate Decision
· EUR ECB Press Conference
· CAD BoC’s Governor Macklem speech
Today’s Highlights
· Forex Today: Dollar firmer amid tapering expectations, as all eyes remain on ECB
· GBP/USD recaptures 1.3800 as US dollar retreats
· EUR/USD holds higher ground above 1.1800 ahead of ECB
· EUR/GBP: Break above 0.86 to clear the path towards the 0.8735 mark – SocGen
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