GBP

Sterling remained at near three-month highs against the Dollar but fell slightly against the Euro late last week, as Brexit talks continued whilst the currency also brushed off talks of a Scottish independence referendum that could cause major uncertainty down the line after Brexit.

Weakness in the U.S. dollar caused by thin trading due to the Thanksgiving holiday boosted sterling, which had been approaching its September high recently on optimism over Brexit talks between Britain and the European Union. News from over the weekend on Brexit came from foreign secretary Dominic Raab who stated the UK is in the last leg of negotiations with the EU over a post-Brexit trade deal.

Raab claimed it was likely the talks were entering the last real major week, and an agreement remained possible if the EU showed pragmatism. Both sides are still calling on one other to compromise over fisheries and state aid.

Scottish leader Nicola Sturgeon also said over the weekend that an independence vote should take place in the earlier part of next year. PM Boris Johnson has so far rejected talks of a second referendum citing the result of the first vote in 2014.

USD

The Dollar has hit a Two year low this morning and is set to hit its largest monthly fall since July as vaccine optimism and bets on further monetary easing in the US pushed investors out of the safe haven currency. The drawn-out US elections has so far delayed lawmakers from passing any sort of fiscal spending package and the market is now starting to move towards the feeling that the Fed will proceed with more bond buying in their next December meeting.

Key Announcements

10.30 – EUR – ECB President Lagarde speech
13.00 – EUR – German CPI, expected to remain at -0.5%