The Pound has continued to weaken as Q3 GDP showed a worse than expected reading, although Bank of England Governor Bailey has welcomed the 15.5% growth shown. Minister Gove has said that although progress is being made during post-Brexit trade negotiations with the EU, divergences still remain and stressed that the end of December will remain the end of the transition period. He also said that the UK has been flexible during trade talks and the EU needs to also compromise.

Eurozone industrial production came out worse than expected at -0.4% compared to 0.6% that was forecast which out the Euro on the back foot. Eurozone GDP is due at 10am this morning which is likely to cause some short-term volatility. If GDP is higher than expected then the market may start to manage their expectations ahead of next moths European Central Bank monetary policy announcement.

Although US consumer price index inflation figures disappointed the market, unemployment claims dropped from 730K to 709K. The Dollar has strengthened due to its safe-haven status as the market has neem gradually pricing out optimism to do with Pfizer’s coronavirus vaccine and focusing on a potential second lockdown in the US with virus cases still increasing. Federal Reserve Chairman Powell has said that near-term economic risks remain despite the positive vaccine news.