The Pound strengthened late yesterday afternoon as the news broke that the European Union and UK have reached an agreement over the divorce bill. The figure, which could be as high as 55 billion Euros, has not yet been disclosed and has been down played by Downing Street. The divorce bill was one of the main sticking points holding up the talks from progressing to trade.
North Korea announced they have successfully tested a new intercontinental ballistic missile last night which could put the whole of the United States within its reach. The missile which landed in Japanese waters, is said to be the highest flying missile tested to date. US President, Donald Trump, responded to the test by saying he will ‘take care of it’, whilst South Korea responded last night by launching three missiles of their own.
CPI figures will be released from two of the Eurozone’s largest economies; Germany and Spain. The German prelim CPI is expected to post 0.3% whilst the Spanish Flash CPI is forecasted to post 1.7%. Back in the UK, BOE Governor, Mark Carney will be speaking about the fair and effective markets review at the Fixed Income Currencies and Commodities Markets Standards Board. The Deputy Governor, David Ramsden will also be taking part in a panel discussion at the conference. Across the pond, Federal Reserve Chair, Janet Yellen will be testifying before the Joint Economic Committee of Congress on the US economic outlook. The US will also be releasing the Prelim GDP figure, expected to post 3.3% as well as the Pending Home Sales figures, forecasted to post 1.1%.