Good morning,

The Bank of England gave life to sterling this morning, albeit with a fairly predictable update. Interest rates will remain at 0.1% and there were no voting changes from any of the MPC members. The increase in QE, more than £100 BN, will be the key focus for steering the UK economy away from retraction and keeping the conversation around negative interest rates at bay. That being said, as mentioned yesterday, the month-long lockdown and the possibility of it being extended, despite promises from the government, could well be a source of weakness for the pound. Andrew Bailey will be speaking at 12.30pm today.

The results of the US election are still unclear, adding to the uncertainty and making the movements of the dollar erratic and unpredictable.

The Federal reserve’s monetary policy statement and interest rate announcement is due out at 7pm this evening, before we head into US employment data tomorrow making it a very busy 48 hours.

Have a great day.

Author: Alistair Hutson, Head of Relationship Management

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