Back and forth

Today’s news headlines:

‘Thousands of UK businesses not prepared for Brexit, MPs told’. Tens of thousands of UK businesses are still not prepared for the end of the transition period and could see their operations disrupted amid growing fears of chaos at the Calais-Dover crossing early next year. The latest government polling indicates that one-third of firms are still expecting an extension to the transition period, but MP’s were told yesterday that these firms need to be ready by the end of the year. (Financial Times)

‘White House open to bigger stimulus bill as Mnuchin, Pelosi talk’. The White House has reversed its stance on the latest US fiscal stimulus package, signalling that they may now prefer a large-scale agreement. In a 40-minute call, Treasury Secretary Steven Mnuchin told House Speaker Nancy Pelosi that President Trump now wants to pass a comprehensive agreement, despite the government opposing the $2.2tn plan currently on the table. Stocks, which have proved volatile on stimulus talks news, rose again on the latest positivity. (Bloomberg)

Today's events, rates, and data 

  • Risk sentiment was buoyed by news that the White House is open to a larger stimulus package, with the S&P 500 closing at its highest level in over a month. The US Dollar fell, and the Chinese Yuan rose to a 17-month high as investors forecast a Joe Biden Presidency and upcoming US fiscal stimulus.

Today's events

China Caixin Services PMI: 54.8 vs 54.0 previously
UK m/m GDP: 2.1% vs 6.4% previously
UK m/m Industrial Production: 0.3% vs 5.2% previously
UK m/m Manufacturing Production: 0.7% vs 6.9% previously
French m/m Industrial Production 1.3% vs 3.8% previously
Italian m/m Industrial Production: 9.00am
Canada Employment Change: 1.30pm
Canada Unemployment Rate: 1.30pm

Interbank rates:

GBP/USD: 1.2955
GBP/EUR: 1.1000
EUR/USD: 1.1775
USD/CAD: 1.3175