Brexit “still has some legs”, US bipartisan group divides stimulus into two packages

Anil Panchal FXStreet

Having received upbeat Brexit news during the weekend, relating to the continuation of talks for one more week, the BBC Political Correspondent Iain Watson tweets increased optimism among the sources close to Brexit talks with the European Union (EU). However, it was also conveyed that the fisheries and level playing field aren’t the only problems.

Sources close to the #brexit talks with the #eu say the process 'still has some legs' but there are warnings that detailed discussions are also throwing up more problems - beyond the classics of fishing, and level playing field. We will have more @bbcnews @BBCOne just after 10.
— iain watson (@iainjwatson) December 13, 2020

Elsewhere, CNN’s Senior Congressional Correspondent Manu Raju came out with the update on the US coronavirus (COVID-19) stimulus suggesting that the total package will be in two parts and the final details will be presented soon.

The bipartisan group of House and Senate negotiators has made a decision: Separate their proposal into two packages, per sources. One bill will be a $748B proposal, which includes money for small business loans, jobless benefits and vaccine distribution - among other matters.
— Manu Raju (@mkraju) December 13, 2020

The other: A package that includes $160 billion for state and local aid that includes liabilty protections for businesses and other entities - the two biggest sticking points. It’s uncertain how many senators and House members from the group will sign onto the second proposal
— Manu Raju (@mkraju) December 13, 2020

FX implications

Both these events are positive to the market risks and hence AUD/USD bulls keep the reins around the mid-0.7500s during the early Asian session on Monday. On the other hand, GBP/USD begins the week with an upside gap of over 130 pips, currently around 1.3330, on the Brexit-positive news.

Important reads

GBP/USD early price indications, heavily bid on Brexit sentiment

EUR/GBP eyes week-start gap down below 0.9100 on Brexit news

AUD/USD: Bulls battle 0.7550 amid cautious optimism

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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