Lockdown number three

Today’s news headlines:

‘Boris Johnson orders third lockdown for England’. As expected, the escalation of coronavirus cases in the past few weeks has forced the government to subject the UK to a third lockdown that will last six weeks. The only objection comes not from the lockdown measures themselves, but rather the lack of additional fiscal support measures for this third phase. That said, Rishi Sunak’s previous extensions to support schemes are expected to carry over until the end of March, six weeks after this lockdown is planned to end. However, school closures have come as a disappointment, as parents were urged to send their children back to school and Boris Johnston declared schools were ‘safe’ as recently as Sunday. Mr Johnson did signal defeat on that front, however. (Financial Times)

‘Donald Trump vows to ‘fight like hell’ to remain in White House’. The US Senate, led by the outgoing Vice President Mike Pence, is tomorrow set to certify Joe Biden’s election victory. Donald Trump is continuing to pursue his challenge, spouting debunked conspiracy theories and fraud election, having most recently been heard intimidating Georgia state officials. Democrats have responded by requesting the FBI to investigate Trump’s attempted coercion of state officials, which is likely a criminal offence. (Financial Times)

Today's events, rates, and data 

  • We saw a large decline in Sterling fortunes yesterday, likely due to the expectations of a third national lockdown being announced. In the US, equities pared gains though it is difficult to ascribe that to a specific catalyst; all eyes are on election certification tomorrow and todays run-off election in Georgia, which will determine the last two senate seats. 

Today's events

AU ANZ Job Advertisements m/m: 9.2% vs 13.5% last month    
EU German Retail Sales m/m: 1.9% vs 2.6% last month
CH CPI m/m: -0.1% vs -0.2% last month
CA Industrial Prod Price Index m/m: 1:30pm
US ISM Manufacturing PMI: 3:00pm

Interbank rates

GBP/USD: 1.3580
GBP/EUR: 1.1065
EUR/USD: 1.2270
USD/CAD: 1.2745