Following this week’s post-Brexit trade negotiations in which the Pound has experienced persistent weakness, EU chief negotiator Barnier will make a speech at 11am which will be closely monitored by the market. The Pound is likely to remain volatile as market participants look to see if there has been much progress and if there is a positive or negative underlying tone. The European Commission has launched legal action against the UK for failing to comply with the free movement of EU citizens during the transition period.

The Euro remains strong against the Pound but continues to struggle against the greenback. French Finance Minister Le Maire believes that an agreement between EU member states over how to share debt incurred by the coronavirus pandemic could happen as early as next week. German Finance Minister Scholz has said that another fiscal stimulus package will be introduced in early June. Eurozone GDP and employment change data are both due at 10am this morning and is likely to influence the price dynamics of the common currency for today.

Unemployment claims from the US were released worse than expected showing an increase of 2.981 million jobless claims whilst only 2.5 million was expected. President Trump has increased tensions further between the US and China, suggesting that the globalization era is over and manufacturing needs to return to the US. He also refused to speak to Chinese President Jinping who responded by stressing the importance of communication between both countries. This has kept the Dollar strong against both the Pound and the Euro. US retail sales is set to be released at 1:30pm, whilst industrial production data will follow at 2:15pm. Both are predicted to show a significant fall from their previous readings.