The pound continued to remain under pressure against its major currency pairings today . Sterling found little support from US president Joe Biden and PM Johnson face to face meeting in the US on Tuesday . In fact President Biden downplayed the prospects of broking a post- Brexit deal with the UK . The US president issued a fresh warning for the UK not to damage the peace process in Northern Ireland saying he felt very strongly about the issues surrounding the peace process and the Northern Ireland protocol and he would not like to see a change in Irish accords , with the end result having a closed border in Ireland. On a brighter note European Commission vice-president Maros Sefcovic, who oversees EU relations with Britain, said he said wanted to find solutions within the protocol to free up the movement of goods to Northern Ireland adding “We should do our utmost to resolve all outstanding issues before the end of the year, so that’s the timeframe within which we work,”


The euro’s recent support level remains intact after beleaguered Chinese property developer Evergrande negotiated a deal with domestic bondholders, announcing it would pay the yuan-denominated debt due on Thursday . The announcement stabilized markets and lessened demand for safe-haven dollar . German Chancellor Angela Merkel has made a last-minute effort to prop up her embattled successor Armin Laschet who is struggling for momentum . Polls currently favour his Social democrat rival Olaf Scholz . Markets would prefer a coalition led by Laschet , but whoever wins is likely to govern a three -party coalition , which would take weeks to put together . Germany votes on Sunday .


The Federal Reserve is expected to clear the way on Wednesday for reductions to its monthly asset purchases later this year and show in updated projections whether higher-than-expected inflation or a resurgent coronavirus pandemic is weighing more on the economic outlook. Markets would like to see forward guidance , such as the length of the process of reducing purchases, which has implications for the first post-pandemic rate hike. Back in June, the Fed indicated two increases to borrowing costs are coming in 2023 . The Central Bank announcement is this evening .

Economic Calendar
19.00 pm US Fed Interest rate decision
19.00 pm US Fed Monetary Policy decision
19.30 pm USFOMC press conference