EURAUD Range Breakout Still In Play

EURO-AUSSIE

TECHS: Range Breakout Still In Play

POLICY

MNI SOURCES: EU Officials Fear '21 Fiscal Stance Near Neutral

A near-neutral fiscal stance by EU member states looks insufficient to sustain recovery next year, EU officials fear.

DATA

POLITICAL RISK

US Brokers Normalisation Of Relations Between Israel And Sudan

US President Donald Trump has announced that Sudan will become a signatory to the Abraham Accords, normalising relations with Israel.

  • Sudan becomes the third Muslim nation to sign the Accords alongside the UAE and Bahrain.
  • Sudanese gov'ts move comes a day after the US State Department began to remove Sudan from its 'state sponsors of terrorism' list.
  • The normalisation of relations between Israel and Sudan has important historic symbolism, as it was at a summit in the Sudanese capital Khartoum in 1967 that the Arab League agreed not to recognise the state of Israel.
  • The announcement comes as another feather in US President Trump's foreign policy cap, although it is unlikely to prove a significant enough moment to revive his foundering re-election campaign.
  • There remains significant speculation that Saudi Arabia could become a signatory to the Abraham Accords, a foreign policy move that would be truly groundbreaking in the Middle East.

Pelosi 'Hopeful' On COVID-19 Stimulus Bill, But Still 'Miles To Go'

House Speaker Nancy Pelosi talking to MSNBC presently (link for US: https://www.msnbc.com/live), says she is 'hopeful' for a COVID-19 stimulus bill being passed, but that there are 'miles to go' in talks.

  • Pelosi: "We've worked our way through this. There were some other differences [...] we put pen to paper, we're writing the bill."
  • "We could do that [get a bill agreed] before the election if the president wants to"
  • "The President is delusional when he says we've turned a corner on this. We haven't. We have miles to go,"
  • Statements of 'hope' for a deal have come from Congressional Democrats, Republicans, and the White House in recent days, but there seems to be precious little actual progress being made given each side remains far apart on the monetary sums required to get a deal over the line.

Kudlow: Not Much Progress On Key Areas In Stimulus Talks

White House's Kudlow doing the rounds on the morning news shows, with the same message on stimulus negotiations as yesterday: we're closer to a deal than a few weeks ago, but not much progress on some key areas; White House not willing to meet House Democrats on issues such as state/local funding in this bill.

  • Sounds from Kudlow like there is still a long list of differences between WH and Speaker Pelosi. And that's before the Senate gets involved (Kudlow 'not aware' whether McConnell has urged the White House not to make a deal).
  • As such, Kudlow expressing doubts a deal will get done in the 11 days to election day.
  • Still unclear if/when Pelosi/Mnuchin will speak today.
  • Little market reaction, as Kudlow's comments merely reinforce the status quo.
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