However, Brexit headlines will also continue to do the rounds and hog the spotlight as the meeting between Boris Johnson and Ursula von der Leyen yesterday reaffirmed that negotiations will continue through to the weekend.

The new Brexit “deadline” is now Sunday, 13 December, as such.

US stocks turned tail in trading yesterday with the decline led by big tech, as we see more of a push and pull with year-end trading also drawing more focus.

The dollar managed to prevent a further drop, with EUR/USD easing back below 1.2100 and caught in a tussle between its key hourly moving averages now.

But sentiment remains little changed overall, so we’ll see if there is scope for any further pullback in the next week or so before the curtains come down on 2020.

The ECB will be a key focus today as well and here’s a preview of that from yesterday.

Prior release can be found here. UK monthly economic output is expected to keep little changed at the start of Q4, though the data here means little to the market at this point considering the impact November has had amid tighter restrictions in general. Hence, the data here will just reveal some underlying tones but not offer too much on the outlook.

Prior release can be found here. Brexit stockpiling is expected to narrow the trade deficit as imports are estimated to surge further into the year-end. As for overall trade conditions, they are still slowly improving but not quite at pre-virus levels yet.

The October decision can be found here. I shared my thoughts on what to expect here but overall, I doubt the ECB policy decision in itself will have much of an impact on the euro unless policymakers pull off a surprise “recalibration”. However, the tools that they have to work with are rather limited so a lot of it is anticipated already. It is more so of the scale of the “recalibration” rather than the how. The size boost of the PEPP stimulus will be interesting, with a 6 to 12-month extension on the cards, adding to the TLTRO and QE mix. Further rate tiering is a possibility to add to the mix later today.

Lagarde’s messaging will be the more crucial element today as that is to determine the tone in which the ECB views their “recalibration” and how the economic outlook will be like in light of recent vaccine optimism. Adding to that will be any subtle or not-so-subtle remarks on the euro currency, but that would arguably just act as a speed bump in the big picture.

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.