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Greenback Slipping as Trump Slows Stimulus Progress

FOREX

Just ahead of the final hurdle, President Trump slowed the progress of the COVID stimulus package, demanding that direct payments be upped to $2,000 apiece from the agreed $600 payment. Equity futures were knocked lower initially, but the outlook seems more stable ahead of the NY open.

The USD is a touch weaker, with the greenback on the backfoot against most others in G10.

GBP is modestly firmer as markets seem a touch more optimistic about the prospects of a Brexit deal before year-end. Reports this morning suggest EU negotiator Barnier has been sidelined in favour of direct talks between UK PM Johnson and EU's von der Leyen, as well as Germany's Merkel and France's Macron. Fish remain the outstanding issue, but betting markets still apportion a near 70% chance of a deal by the end of the year.

A pre-Christmas deluge of data crosses Wednesday, with weekly jobless claims, personal income/spending, prelim durable goods and new home sales data all crossing. Canadian GDP could also draw interest.

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