ECB Action Sheds Doubts on Yield Differentials

The market caught deal fever last week but hope turned into skepticism early this week. Indices are higher, awaiting the release from the rest of US bank earnings (after JPM beat estimates).  GBP is the strongest performer of the day amid recurring remarks from UK & EU officials expressing attempts to reach a deal in the final innings (more below). Beijing said it would buy $50 bn more in US agricultural goods only if Washington removed retaliatory tariffs set since the start of the trade war. A new Premium trade has been issued, backed by 3 charts & 6 key notes. The chart below highlights the emerging support for the GBP's trade weighted index amid Brexit negotiations.