Today’s news headlines:

‘Biden to push $1.9tn stimulus for pandemic-battered US economy’. The President-elect Joe Biden, has put a new economic rescue plan as his top legislative priority. He has announced a $1.9tn stimulus package will be brought before Congress in the opening days of his presidency. If approved, it will deliver another boost to the flagging US economy in the form of direct payments to Americans and more aid for local governments. Biden wants to shift focus back onto the US economy after an unexpected rise in weekly jobless claims yesterday, knowing that a large-scale stimulus package can help sustain the recovery for at least his first year in office. (Financial Times)

‘UK economy shrank 2.6% in November’. The UK’s economy shrank less than expected in November, with underperformance in the services sector offset by an improvement in manufacturing and construction. The contraction came amid tighter restrictions in England but remained below the consensus forecast by economists. However, overall output stands 8.5% below February 2020 pre- pandemic levels, indicating that the UK faces a long road to recovery from the coronavirus crisis. (Financial Times)

Today's events, rates, and data 

• The Dollar nudged a little higher overnight, following comments from Fed Chair Jerome Powell, that it is too soon for the US Central Bank to consider tapering their QE programme or raising rates. The Euro and Pound were little changed heading into today’s session.

Today's events

UK GDP: -2.6% vs 0.6% previously
UK Construction Output: 1.9% vs 1.5% previously
UK Industrial Production: -0.1% vs 1.1% previously
UK Manufacturing Production: 0.7% vs 1.6% previously
US Retail and Core Retail Sales: 1.30pm

Interbank rates

GBP/USD: 1.3665
GBP/EUR: 1.1275
EUR/USD: 1.2120
USD/CAD: 1.2675