Key Points from This Week

Biden Takes Minor Lead in Firs Presidential Debate

In the first televised debate of the US elections, held on Tuesday, it seems that post-debate polls suggest Biden was seen as winning the event. The debate has been widely criticised for its structureless, messy style and lack of substance. Trump was stereotypically problematic, interrupting Biden constantly, personally attacking his opponent and often going on long, garrulous rants. Biden for his part was at times drawn into the president’s trap and engaged in some mudslinging which left viewers and voters disheartened given the gravity of the issues they were hoping to hear debated.

Lagarde Warns Deflation to Persist in Eurozone

The ECB chief Christina Lagarde warned this week that the subdued inflationary environment in the EZ is likely to persist over the coming months as a result of weak price pressures and a stronger Euro. Lagarde reiterated once again that the ECB is monitoring the exchange rate.

Brexit Talks Face Further Difficulties

The ongoing Brexit talks ran into further difficulties this week with EU leaders threatening to take legal action against the UK if it passes the controversial Internal Market Bill. The legislation, which passed the reporting stage in the House of Commons this week and will now head to the House of Lords, would allow the UK to renege on parts of the withdrawal agreement it established with the EU. The UK PM and Ursula von der Leyen are due to meet for emergency talks this weekend as the 15th October deadline draws closer.

Trump Tests Positive For COVID

The US President announced on Thursday night that he and his wife, the first lady, Melania Trump have both tested positive for COVID. The news has further heightened uncertainty given the president’s age. Trump said that he and his wife will now enter a two week quarantine and begin the recovery process. The next debate is scheduled for 15th October and as yet there has been no change to this, though depending on the course of the president’s recovery, this could be altered.

Key Events Next Week

RBA October Meeting

The RBA meeting next week will be closely watched by traders. While the bank struck a broadly optimistic tone at the last meeting, it did warn over the impact that local lockdowns were having on the domestic recovery there. The RBA is not expected to ease further though traders will be looking to see if there is any change in the bank’s guidance.

FOMC Meeting Minutes

The minutes from the last FOMC meeting will also be closely watched next week. Given the bank’s shift in inflation targeting strategy and its assurance that rates will remain at current levels until 2023, traders will be looking to see just how dovish the discussions were and how close the bank is to any further action.

Canadian Unemployment Data

The final economic release of the week will be Canadian unemployment data on Friday. The BOC has warned over the heightened uncertainty in the outlook as a result of the pandemic and traders will be eager to see how the recovery is progressing there and if there has been any loss of momentum in the jobs rebound.

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