With Parliament approving the UK-EU trade agreement yesterday, the Queen has signed it into law which is the final step in the process. Prime Minister Johnson has said that the deal will bring ‘certainty’ whilst suggesting that the UK is set for a tough few weeks with the number of daily coronavirus cases increasing past the 50,000-mark. The Pound has strengthened slightly but the market remains cautious of the economic impacts of the coronavirus situation.

Yesterday, Germany reported its deadliest day of the pandemic with over 1,000 coronavirus-related deaths. Bundesbank President Weidmann believes that this wave of coronavirus cases is unlikely to have the same impact on the German economy compared to the first wave. Overall, the Euro has lost some ground against the Pound but remains strong against a weaker Dollar.

Senate leader McConnell has refused to allow a vote to go ahead on US households receiving $2,000 stimulus payments as suggested by Donald Trump. The US has decided to increase tariffs on certain aircraft components from Germany and France which has escalated tensions. US unemployment claims are due at 1:30pm which will be closely watched by the market. The Dollar remains weak with the vaccine rollout leading to less demand for the greenback’s safe-haven status.