Today's news headlines: 

‘Brussels sinks UK hopes of overturning shellfish ban’. The EU has refused to grant the UK an export health license to export shellfish to the continent. Pre-Brexit, the UK shipped 10 tonnes of oysters and scallops per week. UK Environment minister, George Eustice, has said he is hopeful of the EU changing its position and resolving the blockage in due course. However, his EU counterpart had stated that this is a reflection of the new reality of the UK leaving the EU, and of the UK/EU new trading agreement. (Financial Times)

‘Powell stresses patience in pledge to keep monetary policy loose’. In an attempt to address apprehensions that additional fiscal stimulus may cause a rise in inflation, Chairman of the Federal Reserve, Jerome Powell, stated yesterday the need for “patiently accommodative” monetary policy. Powell was rebutting former US Treasury Secretary, Larry Summers, cricitsms over the stimulus package who suggested it could be highly inflationary. Deeming the discussions on the new fiscal package “appropriate”, Powell seemed to confirm the ultra-dovish monetary policy stance adopted by the Fed. (Financial Times)

Today's events, rates, and data 

• The Dollar decline we’ve been witnessing over the past week—which coincided with a rebound in the Euro—has taken a pause, whilst the trade weighted Euro has found support at the 100-day moving average. The Pound rally has likewise taken a breather. Brent Crude trading above $60 per barrel signals that there is greater demand for it in 2021, although this is dependent on continued optimism over reopened economies.  

Today's events

UK RICS House Price Balance: 50% vs 63% last month
EU German WPI m/m: 2.1% vs 0.6% last month
EU Economic Forecasts: 10:00 AM
US Unemployment Claims: 1:30 PM

Interbank rates

GBP/USD: 1.3820
GBP/EUR: 1.1400
EUR/USD: 1.2120
USD/CAD: 1.2685