Sterling continued to gain ground against its counterparts today after The Telegraph reported on Thursday that the UK and EU were close to an agreement on the future of the Irish Border (which was one of the major hurdles that was blocking trade talks). The news helped the Pound close above a key technical level as signs of a possible breakthrough on the Brexit divorce bill looks promising.
In the US, President Trump is currently considering relieving his Secretary of state Rex Tillerson from his position, due to reports that their working relationship has become very sour. It’s been reported that this could happen before the end of the year, and this is not the not the first time these two have had issues as earlier this year Rex Tillerson came under fire for allegedly referring to president Trump as a “Moron”. This story will develop over the next couple weeks and the way in which Mr Tillerson is dismissed and the aftermath will be watched closely by the markets as this may impact the Dollar.
Looking ahead to next week. We start with UK construction PMI Monday and day 1 of the Eurogroup meetings in Brussels, a hugely pivotal meeting for the UK and its Brexit negotiations. Tuesday we have the most important of the PMI’s released; UK Services PMI. Wednesday sees the ADP hit the wires from the US, Thursday we have jobless claims from the States and we finish the week with the highly anticipated non-farm payrolls.