Prime Minister Johnson has started talking to EU leaders to ease tensions regarding a no-deal Brexit with neither side willing to compromise on fisheries and competition. Brexit talks resume this week with the 15th October the self-proclaimed deadline for coming up with an agreement. In addition, Johnson is due to announce stricter lockdown measures for the majority of the North of England. Nonetheless, the Pound has made gains against both the Euro and the Dollar.
ECB Chief Economist Lane has suggested that the increasing number of virus cases during the second wave is putting the Eurozone’s economic recovery at risk. ECB member Kazimir mentioned that the central bank will do ‘all [they] can’ in order to get inflation to their target levels. Overall, the Euro has made gains against the Dollar but has lost momentum against a strong Pound.
The Dollar continued to weaken as the Democrats rejected a proposal for a stimulus package worth $1.8 trillion in the hope that a larger deal can be agreed. In addition, the presidential election polls are suggesting that Democrat Biden has the lead against Trump which is also seen as a negative for the greenback.