Cautious optimism

Today’s news headlines:

‘Joe Biden announces team to steer US economy through Covid crisis’. President-elect Joe Biden announced yesterday a slew of economic appointments to help the US economy recover from the pandemic. Along with announcing former Fed chair, Janet Yellen, as Treasury secretary, Mr Biden chose a trio of progressive economists to lead the White House’s Council of Economic Advisers. Effectively serving as the President’s internal think-tank, these advisers will seek to help Biden deliver on his promises of an aggressive spending plan, funded by tax increases on the wealthy along with redressing the systematic income and racial disparities. (Financial Times)

‘Jay Powell warns on US economy despite good news on a vaccine’. The Fed chair warned US politicians yesterday that the economy faces challenges over the coming months after the recent spike in pandemic cases. This comes despite encouraging news on vaccines that will propel medium-term growth prospects. Meanwhile, outgoing Treasury secretary, Steven Mnuchin, urged lawmakers to agree on a ‘targeted fiscal package’ to help American workers and small businesses cope with the impact of Covid-19. (Financial Times)

Today's events, rates, and data 

  • Shares in Asia advanced overnight along with US equity futures, as investors digested more positive news regarding vaccines and the announcement of Joe Biden’s future economic team. The US Dollar remains under pressure with risk-sensitive currencies edging higher on the Greenback. Oil fell for a third day straight after an OPEC+ meeting ended without an agreement on output cuts.

Today's events

Eurozone Final Manufacturing PMI: 9.00am
UK Final Manufacturing PMI: 9.30am
Canada GDP: 1.30pm
US Fed Chair Powell Testifies: 3.00pm
US ISM Manufacturing PMI: 3.00pm
ECB President Lagarde Speaks: 5.00pm

Interbank rates

GBP/USD: 1.3380
GBP/EUR: 1.1180
EUR/USD: 1.1965
USD/CAD: 1.2965

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