There was positive news last week as Covid vaccines are being rolled out, but political crises such as Brexit and US fiscal stimulus continues to preoccupy the market. The upcoming week has inflation reports and central bank decisions in the US and Canada.
In the UK, the monthly GDP report continues to slow, and fell to 0.4% in October, its lowest level in six months. The Brexit negotiations are in full gear, but the sides have not been able to thrash out a deal, and the pound took it on the chin this week as a result.
Eurozone GDP rebounded 12.5% in Q3, just shy of the forecast of 12.6%. At its final policy meeting of the year, the ECB maintained its main interest rate at 0.00% but implemented further easing. The bank increased its pandemic recovery fund by EUR500 billion, to a total of EUR1.85 trillion. German CPI fell by 0.8%, its fourth decline in five months.