European Commission President von der Leyen has mentioned that the UK will need to adhere to EU rules if there is any possibility of the UK having access to the single market. This has put the Pound under renewed pressure for the time being, with the next round of trade negotiations due to begin on 18th March.

Minister Gove has confirmed that the UK will put forward a draft free-trade agreement ahead of the meeting. There are rumours that the Budget that will be delivered tomorrow by Chancellor Sunak will provide a £5bn boost for British exports, which may lift the Pound if announced.

Eurozone investor confidence data released yesterday showed a sharp decline to -17.1, with the coronavirus being blamed as the main culprit for this decrease. In addition, the market has started to price in two interest rate cuts by the ECB by June 2020 which has exerted some selling pressure on the common currency. The focus today will be on Eurozone final GDP figures which will be released at 10am. Italy has now extended the coronavirus quarantine to the entire country with 60m people told to stay at home, which will undoubtedly have a major economic impact.

President Trump will discuss with Congress the possibility of cutting taxes to help with the impact of the coronavirus, which sees the US look towards fiscal measures to complement their monetary policy stance. Trump has also announced that he will hold another press conference today to announce ‘major’ measures that will be taken. Although the Dollar has lost ground as of late, the greenback is still susceptible to strengthening due to its safe-haven status.