Today’s news headlines:

‘Mike Pence rules out using 25th amendment to remove Donald Trump’. Democrats are likely to impeach President Trump today after Vice-President Mike Pence decided against actioning the 25th amendment to remove Trump from office. Liz Cheney, the third-ranking Republican in the House of Representatives, sent shockwaves through the Capitol with comments that she would support the impeachment vote. The Senate is unlikely to hold a trial on whether to convict Trump before the inauguration of Joe Biden, meaning the current President will have already left his post. (Financial Times)

‘UK to start talks with EU on finance cooperation this week’. UK and EU officials will begin negotiations this week on how both sides will cooperate over financial services regulation in post-Brexit Europe. The two sides have agreed to broker an agreement by March after the financial services industry was largely bypassed in Brexit talks. A comprehensive agreement will help preserve London as a hub for EU finance, although the EU has long wanted to have more financial infrastructure based in member countries. (Bloomberg)

Today's events, rates, and data 

• Sterling strengthened overnight and into this morning as policymakers at the Bank of England tempered expectations that the UK would cut interest rates into negative territory in the near-term. The US Dollar has also come under some selling pressure as Fed members downplayed the idea of any tightening of monetary policy in the coming months.

Today's events

ECB President Lagarde Speaks: 9.00am
US CPI and Core CPI: 1.30pm
FOMC Member Brainard Speaks: 6.00pm
FOMC Member Clarida Speaks: 8.00pm

Interbank rates

GBP/USD: 1.3680
GBP/EUR: 1.1210
EUR/USD: 1.2200
USD/CAD: 1.2725