Despite Prime Minister Johnson self-isolating after coming into contact with an MP that was later diagnosed with coronavirus, the Pound remains buoyant as Environment Secretary Eustice has suggested a deal ‘can be done’ between the UK and EU and the main sticking point ‘can be resolved’. The next key date for the Pound this week is a video conference between EU leaders which is scheduled for 19th November. Any comments about the current state of post-Brexit trade talks will be scrutinized by the market.
The Euro remains under pressure against the Pound but is performing well against a weaker Dollar. On Friday, flash Eurozone GDP data came out at 12.6% compared to 12.7% that was forecast. The market remains wary that the European Central Bank is still likely to intervene with some monetary stimulus in December which is keeping the Euro from making significant gains.
The Dollar has lost ground since the market reopened as the market takes a more risk-on approach. This is due to optimism about coronavirus vaccines but also because Chinese industrial production came out better than expected which has given the market confidence that the global economy can rebound after the pandemic.