The final push

Today’s news headlines:

‘Fed to extend debt purchases to boost flagging US economy’. Overnight, the US Federal Reserve pledged to purchase at least $120bn of debt per month until more substantial pandemic progress has been achieved. Fed officials upgraded their outlook on the US economy at the end of their two-day meeting, despite predictions that they would keep interest rates close to zero until at least the end of 2023. The US central bank fell short of calls for more monetary stimulus to tackle the US’ flagging recovery, as chairman Jerome Powell instead stressed that fiscal policy would be the most effective way to tackle the immediate issues. (Financial Times)

‘MPs prepare for pre-Christmas push to sign off Brexit trade deal’. Boris Johnson is likely to interrupt MPs from their Christmas break next week for an emergency session in the Commons, which could see a post-Brexit trade deal submitted for approval. Officials on both sides are still awaiting a breakthrough on fishing rights after ‘progress’ was made on the other two sticking points – fair competition and governance of any trade deal. France’s president, Emmanuel Macron, now appears to hold the key that could unlock a deal if he is prepared to cede ground on access to UK waters for French fishermen. (Financial Times)

Today's events, rates, and data 

  • The Pound surged to a more than two-year high against the US Dollar overnight on positive comments surrounding the state of Brexit negotiations. Overnight and into this morning, Asian stocks saw gains along with US and European equity futures, as politicians in Washington inched closer to a fiscal stimulus agreement. Elsewhere, Bitcoin topped $22,000 for the first time.

Today's events

Australia Unemployment Rate: 6.8% vs 7.0% previously
SNB Monetary Policy Assessment: 8.30am
SNB Press Conference: 9.00am
MPC Official Bank Rate Votes: 12.00pm
UK Monetary Policy Summary: 12.00pm
BoE Official Bank Rate: 12.00pm
Canada ADP Non-Farm Employment Change: 1.30pm
US Philly Fed Manufacturing Index: 1.30pm
US Weekly Jobless Claims: 1.30pm
MPC Member Broadbent Speaks: 3.30pm

Interbank rates

GBP/USD: 1.3570
GBP/EUR: 1.1095
EUR/USD: 1.2235
USD/CAD: 1.2700

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