Breaking the deadlock

Today’s news headlines:

‘UK signals it will suspend its extradition treaty with Hong Kong’. In the latest sign of deteriorating relations between London and Beijing, Foreign Secretary Dominic Raab has signalled that the UK will be suspending its extradition treaty with Hong Kong. This comes a week after the UK banned tech giant Huawei as a long-term supplier for its 5G networks over security concerns. Raab also moved to criticise China’s 'egregious human rights abuses' against its Uighur minority. (Financial Times)

‘EU holdouts ready to accept 390 billion Euros in grants for fund’. The four EU governments that had been holding up negotiations on the bloc’s massive stimulus package have signalled that they are willing to compromise to reach an agreement on the deal. Leaders from the Netherlands, Austria, Denmark, and Sweden were satisfied with €390b of the recovery fund coming in the form of grants, with the rest as low-interest loans. The overall package is worth around €1.8T, with Germany contributing the majority of the bloc’s budget. (Bloomberg)

Today's events, rates, and data 

• The Euro jumped to a four-month high against the Dollar earlier after signs of progress being made in negotiations on the EU’s recovery fund. Meanwhile, the Pound slid on escalating tensions between the UK and China. European stock futures also rose in contrast to a fall in US equity futures.

Today's events

EU Economic Summit: Fourth and final day
Bank of England Monetary Policy Committee Member Andy Haldane Speaks: 4.10pm
Bank of England Monetary Policy Committee Member Member Silvana Tenreyro Speaks: 4.10pm

Interbank rates:

GBP/USD: 1.2555
GBP/EUR: 1.0970
EUR/USD: 1.1445
USD/CAD: 1.3590