Back of the queue

Today’s news headlines:

‘Health chiefs rule out private sector jumping vaccine queue’. Pfizer/BioNTech have gone on record to say they are only supplying the vaccine to the NHS in the UK, so private sector health services will not be able to jump the official queue. Some estimates suggest private availability of the vaccine could be possible once nearly 50% of the general population has been inoculated. It has also been suggested that once the immediate need is met, the coronavirus vaccine might follow a similar seasonal distribution pattern to the current flu vaccine. (Financial Times)

‘Chinese companies face delisting under US audit law’. Congress has passed legislation that will require companies to present audited accounts for review by regulators as a prerequisite for US market listing. This will put Chinese firms under heavy pressure to increase transparency or risk being delisted. This is just the latest measure to combat a perceived advantage the Chinese Government has taken to access liquidity in US markets, without meeting spirit of the law. (Financial Times)

Today's events, rates, and data 

  • Yesterday, we witnessed a sell off of the trade-weighted Pound down to two-week lows, but the overall level seems to be stable despite Brexit deal angst. The Dollar sell off continues unabated and much of this lost value seems to have accrued to the Euro over the past several sessions. Economic data has been relatively positive out of the bloc over the last several weeks, driving asset prices higher. Commodities and commodity currencies have also been making steady gains over the month, led by energy, anticipating a return to growth once the vaccine hopes deliver upon their promise.

Today's events

AU Trade Balance: 7.46b vs 5.82b last month
CN Caixin Services PMI: 57.8 vs 56.8 last month
EU French Services PMI:  8:50am
EU German Service PMI: 8:55am
EU Services PMI: 9:00am
UK Services PMI: 9:30am
EU Retail Sales m/m: 10:00am
US Unemployment Claims: 1:30pm
US Services PMI: 2:45pm
US ISM Services PMI: 3:00pm

Interbank rates

GBP/USD: 1.3400
GBP/EUR: 1.1040
EUR/USD: 1.2135
USD/CAD: 1.2906

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