A turning point

Today’s news headlines:

‘UK urges EU to move on fish, with Brexit deal possible in days’. The UK’s Foreign Secretary, Dominic Raab, painted a brighter picture on Sunday about the state of EU-UK trade talks, with officials set to tackle the last big obstacle – fishing rights. Raab said that a deal ought to be achievable in the coming week but that the EU will need to show good faith, goodwill and pragmatism. Businesses and consumers will face higher costs and tariffs on goods, along with supply chain disruptions, if the UK leaves without a trade agreement on Dec 31st. (Bloomberg)

‘EU proposes fresh alliance with US in face of China challenge’. EU officials will call on the US to forge a new global alliance in what it sees as a ‘once-in-a-generation’ opportunity to meet the ‘strategic challenge’ posed by China. The EU plan will outline co-operation on all manner of issues including digital regulation, fighting the pandemic and tackling deforestation. The blueprint reflects optimism in the bloc about working with the incoming Biden administration, along with caution over the geopolitical aims of those in Beijing. (Financial Times)

Today's events, rates, and data 

  • Overnight, oil moved lower as OPEC+ representatives failed to agree on prolonging output cuts. In addition, stocks in Asia were generally lower in combination with US and EU equity futures, despite global equities heading for a record month of gains. The US Dollar Index fell to more than a two-year low this morning, as the combination of vaccine optimism and potential for more US monetary easing weighed on the Greenback.

Today's events

China Manufacturing PMI: 52.1 vs 51.4 previously
OPEC Meetings: All day
ECB President Lagarde Speaks: 10.00am
US Chicago PMI: 2.45pm
US Pending Home Sales: 3.00pm

Interbank rates

GBP/USD: 1.3350
GBP/EUR: 1.1150
EUR/USD: 1.1970
USD/CAD: 1.2990

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