Important events today:

US: Treasury auctions.

The U.S. Treasury decided not to take a Christmas break this week, unlike the Fed, and is auctioning Treasury bonds almost every day, which reduces the dollar liquidity in the financial system. It is a positive signal for the USD and it will be hard for the GBP to show growth today. On the other hand, a continuation of the uptrend in the oil market will support the pound, as assets are historically correlated. Oil is showing positive dynamics for two reasons.

Firstly, Russia is planning to cut hydrocarbon production by 5-7% next year because of the Western sanctions, which will increase the imbalance of supply and demand. Secondly, the Celestial Empire from January 8 will abolish the mandatory quarantine for visitors to the country. In addition, Beijing abandoned the legal basis for the introduction of strict measures to combat the spread of infection. China is the world’s largest importer of black gold and the easing of covid restrictions is good for oil prices.

Recommendations: flat 1.1975 – 1.2080.