US COVID-19 Cases Continue to Mount
- EUR/USD surpassed 18-month high of around 1.1550 before the European open this morning
- The UK Government has abandoned hope of a US – UK trade deal before autumn
- US reports the highest number of COVID-19 deaths since June, beating another record
Asian stocks traded mixed overnight, with markets behaving somewhat resilient to covid-19 figures. The US reported more than 1,000 deaths from coronavirus yesterday which is the highest number recorded in a single day since June. President Trump also said that the situation is likely to deteriorate further before it gets better, adding to the risk-off theme.
Elsewhere, Australia recorded 501 new coronavirus infections in the past 24 hours – its highest since the epidemic took hold in March.
Victoria State accounted for most of the new cases, with 484. Cross border travel between Victoria and New South Wales will only be allowed for work, education or medical care
EURUSD hit an 18-month high of 1.1547 this morning, triggered by the €750bn EU stimulus package signed on Tuesday. GBPUSD ground higher yesterday, from 1.2660 to a high of 1.2768 before slipping lower overnight, despite negative news on UK/US trade.
The FT reported that the British Government has abandoned hopes of reaching a US-UK trade deal ahead of this autumn’s presidential election, with officials blaming the COVID-19 pandemic for slow progress
A third round of talks will begin via online video conference on Monday but neither side expects a conclusive breakthrough.
US Secretary of State Mike Pompeo met Prime Minister Johnson and other senior UK politicians in London yesterday, saying he wanted to ‘bring this to a closure just as quickly as possible’, highlighting the desperation for a successful breakthrough in talks.
15:00 BST – US Existing Home Sales (Consensus: 4.75m)