One down, one to go

Today’s news headlines:

‘EU countries ban UK travel and halt Channel freight over Covid variant’. Following the discovery of a new, more infectious strain of coronavirus in the UK, 10 EU countries have so far banned travel to the UK, with some also suggesting a ban on freight for 48 hours. If the proposed blocks were to take place, up to 10,000 trucks per day could be disrupted. UK Prime Minister Boris Johnson, will chair an emergency COBRA response meeting today in light of the pressing freight issue. (Financial Times)

‘US lawmakers reach deal on $900bn stimulus package’. US lawmakers have reached a deal on a coronavirus stimulus plan that will include a $284bn extension of the Paycheck Protection Plan. The effort will also extend unemployment benefits which will result in means-tested payments of up to $600 per individual, $1,200 per married couple and $600 per dependent child. (Financial Times)

Today's events, rates, and data 

  • The detection of a new virus strain in the UK has cause a sizable plunge in the Pound since Fridays close. We have gone from the top of the trade range on the Pound Index towards the bottom, perched above the 200-day moving average. The Dollar has made a resultant move higher, and oil dropped to previous key levels around $50 per barrel. With the approval of the US Stimulus package and no Brexit deal in sight, pre-Christmas positioning is clearly skewed towards buying Dollar assets which are likely to see a boast from the bipartisan effort.

Today's events

UK CBI Realised Sales: 11:00am
EU Consumer Confidence: 3:00pm

Interbank rates

GBP/USD: 1.3275
GBP/EUR: 1.0900
EUR/USD: 1.2175
USD/CAD: 1.2880

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