Big news overnight on the political front as we gear up for a busy end to the week.

The USD weakened overnight, allowing paired currencies to gain in value. The EURUSD opened at $1.10705 and was flat early, dipping to a low of $1.10642 mid-session. The euro shot up from those lows to peak at $1.11391 a few hours later. It came off those highs slightly and is no trading at $1.11253. The GBPUSD surged on the back of a Brexit deal being reached between Boris Johnson and the EU, however it came off those highs as the realisation set in that there is a good chance that the UK parliament will not agree to the deal. The pair opened at $1.28239 and slipped to lows of $1.27469 mid-session. It rallied off those lows on the back of the Brexit deal, with the pound reaching a high of $1.29887. However, as news emerged that leaders of different political parties in the UK said they would not back the deal, the pound fell to near session-lows of $1.27559. It regained a large chunk of those losses late in the day and is currently trading at $1.28714.

The Dow made some modest gains overnight, breaking back through the 27,000 barrier. The index opened at 26,971.28 and dipped to lows of 26,924.06 early before rallying to a high of 27,136.79 mid-session. It came off those highs late in the day and is now trading at 27,030.19. The Dax opened and closed flat, with the Brexit news causing some movements late in the day. The German index started the day at 12,658.42 and was steady early before rallying to a high of 12,817.56 mid-session. It fell away over late trading, hitting lows of 12,621.42 before closing at 12,658.01.

The day ahead shapes up as a busy one, with data and the latest Brexit deal to digest. The UK parliament with hold a rare session on Saturday, in order to vote on the latest Brexit deal. PM Johnson faces an uphill battle to get the deal passed, with the main opposition party already rejecting the deal. Johnson will have to try and negotiate with individual MPs to try and get the numbers required to get the deal passed.

Data published today includes:

All – IMF Meetings

Europe – EU Economic Summit, European Current Account

Canada – Governing Council Member Timothy Lane speaks

UK – BoE Governor Mark Carney and MPC Member Jon Cunliffe speak

US – CB Leading Index, Federal Budget Balance, FOMC Members Esther George and Richard Clarida speak

China – GDP, Fixed Asset Investment, Industrial Production, Retail Sales, Unemployment Rate, NBS Press Conference

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