GBP

The pound rallied on Monday after an agreement had been reached on the Northern Ireland protocol between the UK and the EU. British Prime Minister Rishi Sunak reported that a breakthrough had been made and EU Commissioner Ursula Von Der Leyen stated that they “have removed any sense of a border in the Irish Sea”. The reworked protocol is to be known as the Windsor Framework, according to Sunak who welcomed the beginning of a new chapter in UK-EU relationship. Sunak and Von Der Leyen also announced “The Stormont Break”, which will allow Northern Ireland politicians to pull an emergency brake to EU goods laws that might have a negative impact on Northern Ireland. Sunak then went onto say UK lawmakers and Northern Irish parties will be given time to work through the legal text. The UK Parliament will also have a vote on the deal.

The pound has been given a boost after this news which could give Sterling a much needed rally against all major currencies.

USD

The dollar fell on Monday as weaker-than-expected data caused the dollar’s recent rally to pause. US durable goods fell more-than-expected last month by -4.5%, whilst markets had forecasted only a drop of -3.7%.

USD has appreciated 3% in February with stronger-than-expected data but the recent figures suggest that investors are awaiting more clues from the Federal Reserve before placing aggressive bets on the US currency.

Key announcements

15:00 – USD – Consumer confidence