Prime Minister Johnson will fly to Brussels later today to meet with European Commission President von der Leyen to work through a list of main sticking points that have stopped the UK and EU from agreeing to a trade deal. The Pound has strengthened as the UK has dropped certain controversial clauses in the Internal Markets Bill, allowing both sides to agree to a procedure going forward for Northern Ireland. Minister Gove has also said this morning that there is scope for compromise on fisheries which is also a positive.
German Chancellor Merkel has said that they will not be able to do enough vaccinations in Q1 2021 to bring about a major change, with the market expecting lockdown restrictions in Europe’s largest economy to increase. Overall, the Euro has lost ground against a stronger Pound but has performed well against a weaker Dollar.
The Dollar’s safe-haven status has taken another hit with the Republicans and Democrats moving closer to agreeing to a fiscal stimulus package which in turn led to a weaker greenback. However, both parties have differing views on the finer details of the package which will take some time to compromise over.