Today's news headlines:

‘Sunak aims to unveil Brexit deal after meeting Monday’. It appears the UK and the EU are ready to settle their differences and come to a compromise on the plans for Northern Ireland post-Brexit. Ursula von der Leyen and Rishi Sunak will meet early this afternoon to try and reach an agreement on issues relating to trade flows and the sovereignty of Northern Ireland. This would be a significant step in negotiations with the Prime Minister expected to brief the cabinet shortly after the meeting should talks be successful. (Bloomberg) 

‘UK firms plan more hiring and price rises despite recession’. The dynamic among businesses remains robust as we work our way through the year, as many continue with their strong hiring programmes despite the uncertain path for the UK economy. Business optimism is certainly on the rise as energy prices cool and headline inflation shows signs of a retreat. Prices are still likely to continue on their path higher in the coming months as 56% of 1,500 businesses surveyed by the Centre for Growth expect to increase their selling prices in the first half of the year. (Bloomberg)

Today

Asian equities slipped overnight as markets continued to digest PCE price data out of the US and the possibility of further interest rate hikes by the Federal Reserve. European stocks opened higher this morning, while US equity futures also point to gains. The Dollar is down marginally in early trading while the Pound gains on a trade-weighted basis. 

Events

US Core Durable Goods Orders MoM (Jan): 1:30PM
US Durable Goods Orders MoM (Jan): 1:30PM
US Pending Homes Sales MoM (Jan): 3:00PM
US FOMC Member Philip Jefferson speaks: 3:30PM
Japan Preliminary Industrial Production MoM (Jan): 11:50PM
Japan Retail Sales YoY (Jan): 11:50PM

Interbank rates*:

GBP/USD – 1.1962
GBP/EUR – 1.1333
EUR/USD – 1.0555
USD/CAD – 1.3595

Please contact your Dealer about any upcoming FX requirements you may have, or call +44 (0)20 3465 8200. 

*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.