Today, Foreign Secretary Raab will chair an emergency Cobra committee meeting regarding social distancing and it is expected that a three-week extension to the lockdown will be announced. The IMF has called on the UK and EU to extend the transition period past the end of December in order to reduce uncertainty.
However, Chancellor Sunak has said he wants to see a deal reached with the EU by the end of the existing transition period. Both sides have agreed to go ahead with three rounds of negotiations by June, with the first round commencing on 20th April. As a result, the Pound remains strong against the Euro but has lost ground against the Dollar.
Euro (€) Although Eurozone finance ministers came to an agreement over a stimulus package worth €540 billion, they still haven’t compromised over potentially sharing debt that has been issued as a result of the coronavirus. This has kept the Euro under wrap against both the Pound and Dollar. Eurozone industrial production will be released at 10am this morning, which is likely to be closely watched by the market.
Dollar ($) US industrial production saw its biggest decline since 1946, whilst retail sales experienced an 8.7% drop. Nonetheless, the Dollar strengthened due to its safe-haven status as the IMF has predicted that the global economy will shrink but 3% due to the coronavirus pandemic. US unemployment claims data is due to be released this afternoon at 1:30pm and is likely to be a source of volatility.