MPC member Ramsden has suggested that the Bank of England is not planning to introduce negative interest rates although if the UK economy continues to weaken then it could be something to look at. Ramsden stressed that for the time being the central bank will keep interest rates low and will use tried and tested methods such as quantitative easing to help stimulate the economy. The UK and Japan will continue trade negotiations with a deal expected by the end of the month. The Pound has made some gains against the Euro this morning but struggled to do the same against the Dollar.

Reports are suggesting that Germany is bringing forward plans to introduce further stimulus worth €16bn for a total of €26bn. Although this will be welcomed by the market, economists are suggesting that this could mean that the economic recovery in Germany has not been as quick as anticipated which is why this spending is being brought forward. As a result, the Euro has lost ground against both the Pound and Dollar.

On Friday, US employment data exceeded expectations which gave the Dollar a boost against the Pound and the Euro. The unemployment rate dropped to 10.2%, average hourly earnings increased to 0.2% and non-farm employment change came out at 1763K compared to 1530K that was forecasted. With Congress unable to break the deadlock over the next coronavirus support package, President Trump signed several executive orders that partly restored payments to people who lost their jobs during the pandemic, although according to a report by Reuters this is about two-thirds of what was paid earlier on during the crisis. Negotiations will resume with both Treasury Secretary Mnuchin and Speak of the House Pelosi committed to finding a compromise.