Euro/US dollar was trading in a heavy manner early in the session, still weighed by European Central Bank’s Mario Draghi comments yesterday. Stop losses below 1.0910-15 were soon flushed out and the pair traded to an eventual low of 1.0895, the lowest level since March.

Sterling

UK Prime Minister Theresa May insisted that Britain’s vote to leave the EU must be honoured, as the dividing lines between the UK and the rest of the European bloc hardened at her first leaders’ summit in Brussels. The agenda of this two-day meeting is trade and migration – both of which will be impacted by the outlook for Britain’s EU exit. As we await any ‘off-the-record’ comments or actual developments, Sterling is trading about 2.2 per cent above the $1.20 threshold and multi-decade low – that low is obviously stripping out the October 06 Sterling ‘flash crash’ low of $1.1450 just to simplify the current state.

US dollar

According to CNN’s debate polling, Hillary Clinton has edged all three head-to-head examinations against Donald Trump. And according to the FT’s poll-of-opinion polls tracker currently, Clinton leads Trump by 45 points to 39. The comments from one of Fed chair Janet Yellen’s closest FOMC members underlines why the futures market currently shows a close to 70 per cent chance of a US interest rate hike on December 14. Currently, this positive US dollar outlook is keeping the EUR/USD rate depressed below the $1.10 threshold after declining to a three-month low.