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It might, at a glance, appear that yesterday was a data-less trading session. Whilst that might be technically correct, there was still a lot going on. Euro stocks (except VW) were in high demand after Reuters reported details of the possible form of further easing from the European Central Bank (ECB), citing unnamed officials.

Apparently, Mario Draghi and co are considering various options, including buying more bonds and introducing a two-tier penalty charge whereby banks would be charged a different deposit rate depending on the level of excess liquidity deposited at the ECB. This could allow a bigger deposit rate cut, whilst cushioning the impact on banks’ profits. If the report is correct, the ECB’s policymakers are looking to do something, rather than nothing at all, this time next week. The focus will then turn immediately to the Fed which is expected to do the opposite and tighten its policy a little.

UK GDP is released this morning and Sterling could look to extend its gains against the Euro. The figure is expected to still show a relatively strong outcome with the markets expecting 0.5% quarter-on-quarter and 2.3% year-on-year. Despite the reduced volume in the market for Thanksgiving yesterday, USD remained strong and Sterling may struggle to gain any ground against the Dollar as we head closer to a December Fed rate hike.

Data to watch: 9.30am UK GDP.

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