Weekly FX positioning data for the week ending December 8, 2020
– EUR long 156K vs 140K long last week. Longs increased by 16K
– GBP long 6K vs 8K short last week. Longs increased by 14k

Down $0.21 or -0.45%
The price of WTI crude oil futures for January delivery are settling at $46.57. That is down $0.21 or -0.45%. The high price reached $47.29. The low price extended to $46.34.

FDA says that they have notified the CDC and Operation Warp Speed to expedite work on the matter
This comes after the FDA advisers had overwhelmingly approved the Pfizer vaccine yesterday . This is merely a formality at this stage and the market isn’t too jumpy on the latest developments here after the November euphoria.

Reuters with the headlines, citing a senior EU official on the matter
– Latest developments in talks not very optimistic
– Differences remain very, very big
– Only certainty is that the UK leaves after 31 December
I’m surprised that they kept count because I’ve certainly lost track on the number of times the can has been kicked down

It is starting to get a bit ugly
For the DAX, the recent rally seems to have met a pause as it encounters resistance from the 3 September high. There is now some support from the 13 November low at 13,004 but the 100-day moving average (red line) will be the key level to watch @

The market mood is tilted towards being more risk averse this morning
European indices are mostly down by over 1% on the day, with the DAX nearing a decline of 1.7% currently as US futures are also seen slumping.

London reported 4,144 new virus cases today
That compares with the 2,550 new cases reported in the day before, with 34 deaths also reported in London hospitals. A Tier 3 lockdown for London will be a blow to the UK economy and add misery to the pound should Brexit prospects stay more bleak.

EUR/GBP climbs above 0.9100 on the session
The uneasiness surrounding the Brexit situation is continuing to weigh on the pound, as any positive news – if there will be any that is – is unlikely to come about in the next two days and possibly only after the weekend.

Bloomberg reports, citing officials with knowledge of the discussions
As such, that is leading to a no-deal scenario being the likely outcome but still, both sides are working to spend the coming days in search of a breakthrough.

The ECB will announce its „recalibration“ later today
I outlined what to expect later today but in summary, we are almost certainly going to see an expansion of PEPP stimulus by at least €500 billion and likely to June 2022 i.e. 12-month extension. Adding to that will be the enhancing of TLTRO terms.