The UK unemployment rate surprised the market this morning with a release of 3.9% which is better than the 4.2% figure that was expected. Nonetheless, the employment data showed the largest quarterly decline in over a decade with 220,000 jobs lost which has kept the Pound from making any further gains against the Euro and the Dollar after a strong performance yesterday. In response, Chancellor Sunak has reiterated that the government cannot protect every job with the furlough scheme ending in October.

Eurozone consumer confidence data released yesterday came out better than anticipated at -13.4 compared to -16.0 which was forecasted. Both Eurozone and German ZEW economic sentiment data will be released at 10am which is likely to cause some volatility for the common currency. The number of coronavirus cases in Germany has increased by 966 cases with 9,992 active cases which is the highest level since 22nd May. Concerns about a second wave of virus cases in Europe has stopped the Euro from strengthening further.

With the price of gold falling by 1.75% to below the $2,000 level and US-China tensions still on the rise, the Dollar has been the main beneficiary due to its safe-haven status. In response to the US imposing sanctions against 11 Chinese and Hong Kong officials, China will retaliate with sanctioning the same number of US citizens including several Republican senators. Further tensions between the two economic superpowers will most likely further help the Dollar recover some of its recent losses.