Prime Minister Johnson has warned that there is a strong possibility of a no-deal Brexit which led the Pound to weaken against the Euro. However, negotiations will continue between the UK and EU until the end of this weekend to try to break the deadlock. Irish foreign minister Coveney mentioned that he believes the UK wants a deal but the fact that there was very little sign of compromise is a problem. Foreign Secretary Raab has said that the EU would need to shift their demands significantly for negotiations to carry on beyond Sunday.

The Euro strengthened yesterday as the ECB announced that they will be extending their PEPP programme by €500 billion until March 2022 (a 9-month extension) whilst leaving their interest rate unchanged which was welcomed by the market. Germany has seen a record amount of daily coronavirus cases with nearly 30,000 new cases reported.

The Dollar weakened as US unemployment claims jumped sharply to 853K compared to the 723K figure that was forecast. In addition, the daily number of coronavirus related deaths in the US exceeded 3,000 for the first time. US Treasury Secretary Mnuchin has said that progress is being made on a fiscal stimulus package as well.