Third wave

Today's news headlines: 

‘UK and EU move to calm tensions over access to jabs’. Tensions have cooled this week in the recent EU-UK spat over vaccines. The European Commission has pledged to begin working together with the UK in the fight against the virus. It's expected that production of the vaccine will be boosted at Halix, the Dutch production plant, with the support of the UK government. The UK has not ruled out providing the EU with some of it's contracted doses. This comes after Health Secretary Matt Hancock warned of the potential strained relations if the EU were to impose export sanctions on the UK. (Financial Times)

‘Johnson signals looming France-UK travel restrictions’. As virus cases surge and France enters yet another lockdown, pressure is on the UK government to minimise the impact of the third wave. The UK’s progress in the vaccination campaign is providing hope that the relaxing of restrictions will come sooner rather than later. The threat of a third wave has caused some back bench MPs to voice their concern and recommend adding France to the red list, where travel to and from is barred. If the UK is to stay on track with the roadmap out of lockdown, this next phase of the pandemic appears critical. (Financial Times)

Today's events, rates, and data 

  • The FTSE 100 closed 0.2% higher yesterday as a fall in CPI cooled inflation fears. Sterling continues to weaken against the Dollar falling below $1.37 after fresh coronavirus concerns. Oil has climbed nearly 6% over the last day after a ship became trapped in the Suez canal, blocking a vital trade link between Asia and Europe.

Today's events

Swiss National Bank Monetary Policy Assessment: 8:30am
Bank of Canada Governor Tiff Macklem Speaks: 9:30am
ECB President Christine Lagarde Speaks: 9:30am
BOE Governor Andrew Bailey Speaks: 9:30am
US Final GDP q/q: 12:30pm
US Unemployment Claims: 12:30pm
EU Economic Summit Day One: All day

Interbank rates

GBP/USD: 1.3672
GBP/EUR: 1.1577
EUR/USD: 1.1812
USD/CAD: 1.2566

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