Cable falls back under the 1.2700 handle
The optimism is beginning to fade a little as more reports are coming in that the DUP isn't coming around on the Brexit deal that Boris Johnson is seeking at the moment.
Negotiations in Brussels have already begun this morning but it may yet be all for nothing if Johnson can't get a majority in parliament to support him on any Brexit deal.
The pound has already fallen off by ~100 pips against the dollar today as cable dips back under the 1.2700 handle towards support around 1.2662-64 currently.
Looking ahead, it's a step-by-step process for the pound. Firstly, negotiations in Brussels will be the key thing to watch out for. I reckon that may yet lead to some form of draft Brexit deal of sorts or the alternative is, talks break down completely.
If we do get some form of agreement, it will then come down to Johnson trying to convince UK lawmakers - DUP and ERG in particular - to get on his side and support his deal. As mentioned earlier today, that remains an extremely tall order.
In the mean time, be wary of more potential headline risks that could swing the pound all over the place in trading today.
