Positive sounds of a possible breakthrough....>

FOREX: Positive sounds of a possible breakthrough in the European Council's

summit, concerning the COVID-19 recovery plan, added to EUR's recent recovery,

allowed EUR/USD to extend to a 4-month high of $1.1468. However, as no immediate

announcement was forth coming, apart that the summit would reconvene late

(1500BST then moved to 1700BST), EUR pared gains, sinking to a low of $1.1403 as

it squeezed out some of the weaker longs before recovering back through the

1600BST fix to $1.1448 before settling around $1.1440.  

- GBP picked up a bid tone through the Europe morning, helped by positive moves

in equities, optimism ahead of the release of Oxford COVID-19 vaccine progress,

with recovery also aided by EUR/GBP reversing tack and moving from outside its

1.0% 10-dma back toward its key 10-dma (though remained above). Cable met stiff

resistance into $1.2650 but eventually edged to $1.2665 and retained a buoyant

feel through the NY afternoon.  

- Late reports suggest EC summit close to agreeing the grant portion of the

E750bln aid package, lowered to E390bln from E500bln, though Hungary could

provide the next hurdle.