FX Daily

* It now looks as if there will be a bi-partisan deal later today in the US Senate, which extends the debt ceiling to early February and secures funding for the federal government until mid January. The Senate bill will need to be approved in the House before the deadline for the debt ceiling, so this will be a gun to the head of the House Republicans. It also remains uncertain whether House majority leader Boehner will allow a vote on the bill and if enough Republicans will support it.

* The EU finance ministers are expected to give the final approval for the new banking supervisor in connection with today’s ECOFIN meeting. The Commission-EIB initiative regarding SMEs is also expected to be on the ECOFINagenda today. In Europe there will probably also be focus on public finances with both Ireland and Portugal presenting 2014 budget proposals.

* We have a light data calendar with the only notable releases being CPI in the UK, the ZEW-business indicator in Germany and the Empire regional manufacturing survey for the New York area.

* Norwegian trade data due for release.