Sterling service from the BoE governor
- The Bank of England governor helped rally sterling by suggesting that the Bank was not indifferent to its decline. Not cutting rates may offset the perception of a UK government that is less welcoming to foreigners (the UK needs foreign capital inflow).
- Oil prices have been demonstrating sterling-like volatility, with some weakness following a suggestion that Russia would not be cutting production. For the first time, renewable energy has become the largest electricity generation capacity (NB not production).
- US consumer confidence weakened, but politics played a role. Fanatical supporters of one presidential candidate are likely to expect economic Armageddon if the other presidential candidate is ahead in the polls. The characteristics of the most negative consumers loosely fit with the demographics of a Trump supporter.
- Canada's prime minister delivers a funeral oration for free trade at the EU parliament, following the death of the EU-Canada trade deal. UK mortgage lending data is due, Germany delivers consumer confidence and there is inventory data from the US.