People's Bank of China Leaves Cash Rate Unchanged

According to the bank's governing board, further monetary easing would help to reduce risks as it would strengthen the economy and private sector balance sheets.

Bank of ChinaThe People´s Bank of China announced its decision to leave the one-year cash rate unchanged for the sixth consecutive month at 3.85 percent, remaining in line with the analysts' expectations. The five-year lending rate stood at 4.65 percent. The decision came after the bank decided to keep the medium-term lending facility cash rate unchanged last week.

The National Bureau of Statistics reported that the House Price Index was at 4.6  percent in September, falling from the previous month's 4.8 percent.

The Reserve Bank of Australia published its minutes, signaling that it will cut the cash rates and it's planning to expand its government bond-buying program next month in order to aid economic growth now that coronavirus cases are dropping. According to the bank's governing board, further monetary easing would help to reduce risks as it would strengthen the economy and private sector balance sheets.

So far 65,927 coronavirus cases have been reported in Australia, as well as 904 deaths.

By 7:05 GMT the Australian Dollar went down by 0.39 percent against the US dollar, going down to the 0.7040 level. In the same way, the New Zealand Dollar went down by 0.55 percent against the greenback, falling to the 0.6568 level.

Germany's Producer Price Index Climbs

The Federal Statistical Office of Germany reported that the Producer Price Index went up by 0.4 percent (month-to-month) after being at 0 percent on the previous month, and higher than the analysts' expectations, who expected it to be at -0.1 percent. In yearly terms, the Producer Price Index went down by 1 percent, after falling by 1.2 percent in the previous month and better than the analysts' expectations, who foresaw it to be at -1.4 percent.

The  Swiss Federal Customs Administration reported that the trade balance registered a surplus of 3279 million, falling from the previous month's 3543 million and lower than the analysts' expectations, who foresaw it to be at 3376 million. In monthly terms, exports climbed to 18679 million, after being at 16689 million in the previous month. Imports climbed by 15399 million, after being at 13145 million.

A member of the UK government announced that it sees no point in continuing its talks with the European Union until it decides to treat Britain as a sovereign state.

“Until you make it very clear that you are willing to negotiate with us as an equal, as a sovereign, then there’s no point simply just paying lip service saying you know ‘we’ll intensify’ negotiations,” said the Business Minister, Nadhim Zahawi.

By 7:43 GMT  the Euro went up by 0.04 percent against the US dollar, hitting the 1.1770 level. The Swiss Franc gained 0.06 percent against the greenback, hitting the 1.0989 level.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.