Today’s news headlines:

‘UK approves Covid-19 vaccine for use ahead of US and EU’. The UK Medicines and Healthcare products Regulatory Agency has approved the use of the new Covid vaccine developed by BioNTech and Pfizer. Boasting 95% effectiveness against Covid in phase 3 of their trials, this opens the door to a nationwide inoculation programme, while other countries are still reviewing the drug for use. Britain has signed a deal for 40m doses to be delivered by July, though in total the British government has secured 357m doses of seven separate vaccines. (Financial Times)

‘US senators announce $908bn stimulus proposal’. A bipartisan group of Senators have put forward a $908bn economic support package in response to Fed Chair Jerome Powell’s pleas for a further fiscal policy. The package consists of $288bn for small business aid, $180bn for unemployment benefits and $160bn for state and local governments.  (Financial Times)

Today's events, rates, and data 

• We saw a continuation of positive economic data out of most major economies yesterday, helping to support the ongoing risk rally. Unsurprisingly, Brexit uncertainty continues to weigh on the economy on the UK’s last day in lockdown number 2. The new US stimulus proposal is good news but might slow or reverse some of the US sell off, as domestic stimulus is likely to bolster US assets. This afternoon, a few Fed speakers are likely to continue the call for more fiscal stimulus during the lame duck session.

Today's events

UK BRC Shop Price Index y/y: -1.8% vs -1.2% last month
AU GDP q/q: 3.3% vs -7.0 % last quarter
JP Consumer Confidence: 33.7 vs 33.6 last month
EU German Retail Sales m/m: 2.6% vs -2.2% last month
EU PPI m/m: 10:00am 
EU Unemployment Rate: 10:00am
US ADP Non-Farm Employment Change: 1:15pm
CA Labour Productivity q/q: 1:30pm
US FOMC Member Quarles speaking: 2:00pm
US Fed Chair Powell speaking: 3:00pm
US FOMC Member Williams speaking: 6:00pm

Interbank rates

GBP/USD: 1.3370
GBP/EUR: 1.1090
EUR/USD: 1.2050
USD/CAD: 1.2935

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