More data needed
Today's news headlines:
‘UK government borrowing plunges in 2021-22 but headwinds mount’. This morning's data release showed the UK’s budget deficit was just over half the figure posted at 136 billion pounds a year ago. The improvement came from a prosperous summer of UK growth, yielding higher tax receipts and lower pandemic-related spending. However, UK headwinds are returning as the Omicron variant adds pressure for further fiscal support while debt costs are rising in the face of higher interest rate expectations. (Bloomberg)
‘Boris Johnson cabinet split over new Covid restriction in England’. UK Prime Minister Boris Johnson is facing cabinet opposition to new Covid restrictions before more data regarding the spread of the new variant is seen on Wednesday. Chancellor Rishi Sunak led the opposition, explaining the severity of Omicron should be more known before making a decision that could cost several billion pounds. (Financial Times)
US and European futures bounced higher following gains in Asian equities overnight. Treasury yields ticked up along with oil prices while the US Dollar was little changed on a trade-weighted basis.
German GfK Consumer Confidence (Jan): -6.8 (est. -2.7)
Canadian Retail Sales MoM (Oct): 1:30PM
US Current Account Balance (3Q): 1:30PM
Eurozone Consumer Confidence (Dec): 3:00PM
GBP/USD – 1.3245
GBP/EUR – 1.1720
EUR/USD – 1.1301
USD/CAD – 1.2942
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