The Times have reported that European negotiators have signaled that they are willing to begin work on a joint legal text of a trade agreement with the UK, ahead of trade talks that resume today. According to the report Brussels have dropped its demands for the two sides to reach a broad agreement on all the outstanding areas of dispute before drafting a final agreement and expects the UK to engage in detailed discussions on post-Brexit fishing quotas and the governments future subsidy policy. The talks begin today and last until Friday morning. Speaking yesterday, Deputy Bank of England governor David Ramsden voiced strong opposition to setting negative interest rates saying “at present, negative policy rates would be less effective as a tool to stimulate the economy”. Governor Andrew Bailey is speaking later today.

Addressing European legislators yesterday, ECB president Largarde commented that the external value of the Euro has an impact on inflation and policymakers do monitor foreign exchange movements. However she added that the exchange rate is not a policy target for the Central Bank. She also said the ECB is ready to deploy more monetary stimulus if needed to the virus recovery plan.

The dollar’s recent gains stalled yesterday, after upbeat Chinese data released over the weekend and optimism over an additional Covid relief package dented the greenbacks safe haven status. With Democrat Joe Biden leading Donald Trump in national polls, all eyes will be focused tonight on the first of three televised presidential debates.