Festive fears

Today's news headlines: 

‘UK reports record 106,000 coronavirus cases’. Coronavirus cases continued to rise in the UK yesterday, with 106,000 new cases reported on Wednesday. Pressure is beginning to grow on Prime Minister Boris Johnson to introduce new restrictions to contain the Omicron variant as Scotland, Wales, and Northern Ireland have all shown their hand regarding new measures coming into force after Christmas. Murmurings out of Whitehall suggest that guidance is more likely than legally enforceable restrictions if the data supports it. (Financial Times)

‘Gas price rises creating “national crisis” in UK, energy companies warn’. Good Energy, EDF, and Energy UK called for more intervention in the gas market from the UK government on Wednesday, as prices threaten to remain at unprecedented levels. UK residents face the prospect of energy bills rising as much as 50% in the New Year. Ministers are investigating ways to smooth out these cost increases, such as an extension to the Warm Homes Discount scheme and changes to VAT on energy bills. (Financial Times)


Today

US markets continued to push higher yesterday as the S&P 500 managed gains of 1.02%. Overnight Asian markets finished in the green as trading volumes continue to wind down in the run-up to Christmas. Cable has continued its sweeping move higher, trading at $1.3360 this morning while GBP/EUR has topped €1.1800.

Events

German Import Prices m/m: 3.0% vs 3.8% last month
Canada Gross Domestic Product m/m: 1:30PM
US Core Personal Consumption Expenditures Price Index m/m: 1:30PM
US Durable and Core Durable Goods Orders m/m: 1:30PM
US Unemployment Claims: 1:30PM
Japan National Core Consumer Price Index y/y: 11:30PM


Interbank rates:

GBP/USD – 1.3368
GBP/EUR – 1.1807
EUR/USD – 1.1321
USD/CAD – 1.2821

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