Daily Currency Update

GBP - British Pound

GBP/USD spiked through the 1.29 figure yesterday after UK and EU negotiators announced they had reached a deal. The new deal is largely the same as the one agreed by Theresa May last year - but it removes the controversial backstop clause. Northern Ireland would remain in the UK's customs union under the new agreement.

The DUP aren't too keen on the deal, though. Their deputy leader Nigel Dodds said that Johnson was "too eager by far to get a deal at any cost" and that they'd been unable to book the proposal in the Commons. This has capped the upside in the pound.

All eyes now turn to Saturday as the PM attempts to get MPs, including the DUP, on side. It's his last chance to get Parliament to approve a deal before the Brexit deadline of 31 October and should he fail, he must ask the EU for an extension until 31 January 2020.

Key Movers

The US dollar weakened through the day yesterday, mostly against the commodity currencies including the aussie dollar. Better than expected employment data from Australia also supported the push higher in the local unit. But focus remains almost exclusively on Brexit, however.