GBP, EUR - Overall a stellar session for the Sterling in the...
GBP, EUR - Overall a stellar session for the Sterling in the run up to the crucial meeting between UK PM Johnson and European Commission President VdL slated for 19:00GMT/14:00EST in a bid to overcome some hurdles within the three sticking points to pave the way for constructive negotiations. Sterling was lifted through 1.3400 (vs. low 1.3350) on the back of Cabinet Minister Gove intimating scope for a compromise on fisheries, whilst further optimism from the Irish PM only added to the tailwinds. That said, LPF is touted to be the most contentious issue, with some journalists also questioning the timeframe available to strike and ratify a deal. Nonetheless, Cable surpassed 1.3450 throughout the European morning to notch a session peak at 1.3478 at the time of writing with the 1.3500 level to the upside the next point of resistance, matching the Dec 3rd high. The firmer Sterling has also hampered gains in the Single Currency through the EUR/GBP medium, with the cross tumbling from its 0.9080 high to a base at 0.8983 and looking to end the European day around the 0.9000 mark. As Such, EUR/USD sees itself with slight losses heading into the close and off its ~1.2150 high and with an intraday base at 1.2100. Looking ahead, tomorrow’s docket from a European perspective is packed with risk events including UK GDP, Brexit follow-through, the EUCO summit and the ECB’s policy announcement.
DXY - The broad Dollar and Index look set for a flat close to the European session, but with the latter still contained to the 90.688-934 range seen throughout the morning. Sights for the Buck remain on developments stateside as the House is expected to vote on a short-term spending bill today to avoid a government shutdown and the Senate could take up stopgap funding bill today, whilst Treasury Secretary Mnuchin also suggested 90% of the stimulus package will be completed today. Looking forward to tomorrow, US sees the release of its November CPI figures, but the ECB will likely dictate.
DXY - The broad Dollar and Index look set for a flat close to the European session, but with the latter still contained to the 90.688-934 range seen throughout the morning. Sights for the Buck remain on developments stateside as the House is expected to vote on a short-term spending bill today to avoid a government shutdown and the Senate could take up stopgap funding bill today, whilst Treasury Secretary Mnuchin also suggested 90% of the stimulus package will be completed today. Looking forward to tomorrow, US sees the release of its November CPI figures, but the ECB will likely dictate.
