Main Headlines:
The House of Representatives approved Joe Biden’s $1.2tn bipartisan infrastructure bill late on Friday night, in a major victory for the US president following months of Democratic party infighting. In a 228-206 vote, the infrastructure package passed the House, with 13 Republicans joining most of the Democratic caucus. Six progressive Democrats, including Alexandria Ocasio-Cortez and Cori Bush, voted against the measure. The bill, which passed the Senate in August, will now be sent to Biden’s desk to be signed into law. The vote provides a much-needed legislative win for the US president as he grapples with falling approval ratings and Democrats’ losses in several key elections this week, including the Virginia governor’s race.
The UK is pledging £290m to help poorer countries cope with the impact of climate change, as the COP26 climate change summit enters its second week. Government ministers from around the world are in Glasgow for more talks. They will discuss how to support poorer countries and if reparations for damage from natural disasters should be paid. Most of the money from the UK will go to help Asian and Pacific nations plan and invest in climate action, improve conservation, and promote low-carbon development. The Foreign, Commonwealth and Development Office described the £290m as “new funding”. The government said last month that cuts to the UK’s foreign aid spending, to 0.5% of national income will stay in place until at least 2024-25.
Markets
GBP
Sterling is lower against most majors in overnight trade. The UK is thought to be preparing to suspend parts of the Northern Ireland Protocol, by triggering Article 16. Republic of Ireland’s Foreign Minister, Simon Coveney hinted the EU could terminate the Trade and Cooperation Agreement in response. The U.K., EU and NATO have joined the U.S. in condemning an explosive-laden drone attack early Sunday targeting Iraqi Prime Minister Mustafa al-Kadhimi’s home. In statements, UK Foreign Secretary Liz Truss and NATO Secretary-General Jens Stoltenberg all backed Iraq’s government and security forces and called for a cessation of violence. UK visitors are now able to travel to the US for the first time in nearly two years.
EUR
The euro is lower against the dollar but higher against sterling overnight. Exiting German Chancellor Angela Merkel said she will no longer be involved in politics and will not remain on standby to help out with the crises of the day once she leaves her position at the top of Europe’s largest economy. Thousands of people gathered in Polish cities on Saturday to protest the country’s near-total ban on abortions, venting outrage and claiming the restrictive laws had caused a pregnant woman’s death. Protests erupted in Warsaw, but also in smaller cities and villages like Pszczyna, the southern town where the 30-year-old woman lived.
USD
The dollar is higher against most majors in early morning trade. The casualties at the Travis Scott show on Friday night are prompting the concert business to search for what went wrong and raise fresh questions about the adequacy of security at music festivals. At least eight people died, and many were injured following an apparent crowd surge during Mr. Scott’s headlining set at the Astroworld Festival, making it one of the deadliest concert disasters in years. Ivy League schools Cornell, Columbia, and Brown Universities said they received bomb threats on Sunday that prompted evacuations of some facilities. There weren’t any reports of explosions or damage as of Sunday afternoon.
Ballinger & Co. Morning Report–08th November 2021
Today’s Rates
GBP>EUR – 1.1657
GBP>USD – 1.3492
EUR>USD – 1.1571
GBP>CAD – 1.6804
GBP>AUD – 1.8220
GBP>SEK – 11.583
GBP>AED – 4.9545
GBP>HKD – 10.503
GBP>ZAR – 20.296
GBP>CHF – 1.2331
Today’s Calendar
· GBP BoE’s Governor Bailey speech
Today’s Highlights
· EUR/USD Forecast: Sellers to remain in control unless euro breaks above 1.1600
· Forex Today: Central bank speakers in the limelight
· GBP/USD: Downside resumes towards 1.3425 amid Brexit woes
· Fed: Potential appointment of Lael Brainard poses the main downside risk for USD – MUFG
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