Sterling has started the week on a brighter note, benefitting from weekend headlines suggesting brighter odds of success for the key Brexit negotiations. The ninth round of formal talks will begin tomorrow and according to a report in the Sunday times, both sides have made late concessions . A UK spokesman was quoted as saying “They are working hard to reach a deal with the EU”, adding that the UK has had useful exchanges with the EU in recent weeks on Northern Ireland protocol.

Market attention will focus on ECB governor Christine Lagarde’s speech later today before the economic committee of the European parliament. Although at the last policy meeting Lagarde said she wasn’t concerned about the strength of the EUR, over the weekend European Central Bank member and Italy’s Central Bank Governor Iganazio Visco commented that the “Euro’s recent strengthening is worrying as it puts downward pressure on prices while inflation is already low”, adding “if this persists we’ll have to intervene”.

The dollar fell back from its 2 month highs hit on Friday , undermined by the improved risk sentiment amid optimism over the US fiscal stimulus and improved economic data from China. Looking ahead this week, with Novembers election less than 40 days away, Donald Trump and Joe Biden will go head to head in the first of three television debates tomorrow.