MUFG Research sees temporary support for GBP on the back of the Northern Ireland deal.

"The deal is expected to reduce the influence of the European court of Justice in Northern Ireland but keep it as the ultimate arbiter of disputes about EU law. While the announcement of a deal could temporarily support the pound, it is unlikely to have a significant and lasting impact on pound performance. The recent broad US dollar rebound and deterioration in global investor risk sentiment are more important in driving cable lower in the near-term," MUFG notes. 

"MSCI’s global equity index has extended its sell-off to over 5% over the past week as rising yields have unsettled optimism amongst investors that the global economy can achieve a softer landing," MUFG adds.