The Pound has strengthened against the Euro and the Dollar as the market is paying less attention to the economic impacts of the third lockdown despite Chancellor Sunak highlighting them yesterday. MPC member Tenreyro has mentioned that the Bank of England is still reviewing negative interest rates as a possibility.

The Euro has weakened slightly after investor confidence data came out worse than expected at 1.3 compared to 2.0 that was forecast. French finance minister Le Maire believes that there will be a significant economic rebound in the second half of 2021.

The US House of Representatives is planning to impeach outgoing President Trump on Wednesday. This has given the Dollar some strength as there is currently less risk-appetite by the market. President-elect Biden will announce his fiscal stimulus plan on Thursday which will be closely watched and is expected to be worth billions.