Morning Report

Morning Report – Wednesday 23rd December

Jon Robson, Head of Trading

“The small rebound in the dollar was short lived and it is once again under pressure. We expect recent lows to be tested imminently.”

Main Headlines

France is set to reopen its border with the UK for truck drivers who test negative for Covid-19. The sudden closure of the French border severely disrupted crucial freight travel by ferry and the channel tunnel.

Medical experts do not expect Coronavirus mutations to interfere with the effectiveness of the Covid-19 vaccine however, vaccine provider Moderna, has said that it is possible to produce a new vaccine within six weeks if necessary.


The pound is higher against the dollar and euro in trading this morning. Negotiators are still trying to finalise a Brexit agreement by today and over the past 48 hours, Boris Johnson and Ursula Von der Leyen have held several personal phone calls to discuss matters. Fisheries remains a key sticking point.


The euro is slightly higher against the dollar in early morning trading today. Senior officials say that despite border closures, the new Coronavirus strain is probably already in most major European countries and could start to adversely effect them very soon. GDP data for Spain is also set to be announced in one of the last economic data releases of the year.


The dollar is lower against a set of major currencies including the Japanese Yen. In a shock move, President Trump has rejected the $900 billion fiscal stimulus package citing that relief checks should increase from $600 to $2,000. Democrats have until midnight on 28th December to pass another bill otherwise there will be a Government shutdown.


Global equities are mixed as they try to make sense of Donald Trump’s refusal to sign a fiscal stimulus package and asking for an increase to stimulus checks. The S&P 500 fell nearly 0.7% on this news before fully recanting its losses. Bond yields were steady while oil prices ticked lower.

Main Economic Data/Central Banks/Government (All times GMT)

7:00 a.m.: Germany Nov. Import Price Index
7:45 a.m.: France Nov. PPI
8:00 a.m.: Spain Nov. PPI, 3Q GDP
9:00 a.m.: Italy Dec. Consumer, Manufacturing Confidence
1:30 p.m.: U.S. Initial Jobless Claims, Nov. Durable Goods, Personal Income
3:30 p.m.: EIA Crude Oil Inventory Report
6:00 p.m.: Baker Hughes Rig Count