The UK economy has contracted by its fastest pace since the financial crisis of 2008, shrinking by 2.0% in Q1 2020. However, this was still better than the expected figure of -2.6% so as a result, the Pound has strengthened this morning. In addition, both manufacturing and industrial production figures came out better than expected even though they showed a sharp decline from their previous readings.

From today, self-employed workers and freelancers can apply for a grant from the government through the Self Employed Income Support Scheme which pays 80% of average monthly profits.

The Euro remains under continued pressure as Germany’s daily coronavirus case count almost tripled, with 933 new cases yesterday. There are rumours that the German authorities may reintroduce lockdown restrictions if this gets worse. Eurozone industrial production is due at 10am whilst a speech from ECB Chief Economist Lane is scheduled for 11am, both of which could influence the Euro’s price dynamics for today.

Even though US consumer price index inflation saw its biggest decline since the end of 2008, the Dollar continued to strengthen over the last 24 hours with the market choosing to focus on its safe-haven status. President Trump has urged the Federal Reserve to cut interest rates into the negative territory in order to give the US economy a boost during the pandemic. However, several FOMC members have spoken out against voting for negative interest rates. The market is now focusing on Federal Reserve Chairman Powell’s speech due at 2pm for any indication of the future interest rate path.