The Pound has continued to make gains against the Euro and the Dollar. MPC member Cunliffe has reiterated that introducing negative interest rates in the UK is being looked at by the Bank of England to help with the impacts of the coronavirus pandemic. Trade negotiations between the UK and Japan have begun which also helped give the Pound a boost.

The Euro has strengthened against the Dollar after Eurozone Q1 GDP was revised upwards from -3.8% to -3.6%. It has been reported that EU member states such as Belgium and Ireland have asked the European Commission to take into account the impacts of Brexit and a possible no-deal scenario in their proposals for a European recovery fund.

US consumer price inflation will be released at 1:30pm which is likely to cause some short term volatility. The market is eagerly awaiting the Federal Reserve interest rate announcement and press conference this evening. They are expected to leave interest rates on hold but any comments by Chairman Powell will be analysed by the market.