Following on from a flurry of poor UK data that was released on Friday morning, the Pound has weakened against both the Euro and Dollar. With many retailers getting ready to welcome customers today for the first time in three months, Prime Minister Johnson has said that people should ‘shop with confidence’ to give the economy a boost. A group of MPs from across several political parties are set to urge the government to conduct a vote on extending the Brexit transition period.

PM Johnson will hold high level talks with European Commission President von der Leyen today and will tell the EU that a deal needs to be concluded by Autumn ‘at the latest’. There are rumours that the Bank of England is set to announce a further £150bn of stimulus at their policy meeting this Thursday.

Euro (€)

Eurozone industrial production came out better than expected on Friday at -17.1% compared to -19.0% that was forecasted although this showed that the industry contracted by its fastest pace on record. Overall, the Euro remains strong against the Pound but has lost ground against a stronger Dollar. French President Macron has said that Europe needs to be less reliant on China and the US as the coronavirus pandemic has exposed ‘flaws’ in supply chains globally.

Dollar ($)

US consumer sentiment figures beat the market’s expectations on Friday afternoon, giving the greenback a boost. Disappointing manufacturing production and retail sales figures from China have also caused increased caution in the market, with the Dollar benefiting from its safe-haven status. FOMC member Kaplan believes that although the unemployment rate has increased in the US, he believes that job growth will be positive this summer. There are reports that Secretary of State Pompeo will meet with Chinese officials this week to discuss a wide range of issues in order to decrease tensions between the two parties.