No breakthroughs have been achieved in the dinner between UK PM Boris Johnson and European Commission president Ursula von der Leyenn Negotiators are set to begin the final round of deliberations. Brexit negotiations will continue until Sunday, but big cracks remainon the so-called level playing field for businesses was placed basic on Wednesday. German Chancellor Angela Merkel warned that the dispute over what happens if British rules diverge from the EU could wreck a deal.
In a potential worry for markets, there have been two reports of anaphylaxis and one report of a possible allergic reaction following Covid-19 immunization in the UK. Reuters wrote that ”Britain’s medicine regulator has advised that people with a history of significant allergic reactions do not get Pfizer-BioNTech’s vaccine after two people reported adverse effects, England’s National Health Service (NHS) said on Wednesday.”
On the economic calendar, the key events today will be UK GDP and production data that will come out at 09:00 GMT+2. Economists expect the data to show that industrial and manufacturing production dropped by 6.5% and 8.4% in November as the number of new Covid cases continued to rise. The ONS will also release the October trade numbers.
Later on, the Cable will react to the US inflation numbers that will come out at 15:30 GMT+2. These numbers will possibly show that the America’s inflation remained low in November.
The GBP/USD has been fairly volatile and it is expected to continue. Currently trading just above 1.3350, which is higher than yesterday’s low of 1.3321 and lower than the high at 1.3415.
For today, we expect that the pair will remain at the current range, with the key support and resistance levels being at 1.3300 and 1.3425.
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