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Sterling Firmer as Betting Odds Swing in Favour of a Deal

FOREX

In typical EU style, an agreement was reached to 'go the extra mile' and extend EU-UK free trade talks beyond Sunday's deadline which juiced GBP both at the open on Sunday evening and throughout the European morning. GBP/USD rallied smartly through the Friday high in early Asia-Pac hours and has continued to progress north of 1.34 ahead of the NY crossover. Unsurprisingly then, GBP is the strongest currency in G10 so far.

At the other end of the table, USD trades poorly, with the USD index making an early attempt on the multi-year lows printed on Dec 4 at 90.476 - a level that could be reached should EUR/USD break north of Friday's 1.2163.

The data calendar is typically empty this Monday, with focus resting on the deluge of central bank rate decisions later in the week, with UK, US, Norway, Switzerland among others releasing policy decisions this week.

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