The Pound has seen some weakness due to the introduction of further lockdown restrictions being brought in place in certain parts of the country. In addition, EU leaders have asked for further concessions from the UK during Brexit negotiations. EU chief negotiator Barnier has said fisheries and competition are both still the main hurdles. UK negotiator Frost criticised the EU suggesting that EU leaders are no longer committed to intensifying negotiations. The market will now look towards Prime Minister Johnson’s decision on whether the UK carrying on trade talks or not.

The market is looking towards the release of Eurozone final consumer price index inflation at 10am for fresh euro volatility. European Central Bank President Lagarde has once again reiterated that they are ready to support the economy with further monetary policy if need be. Germany’s health minister Spahn has said that it is the government’s priority to keep the economy open. Overall, the Euro has been quite stagnant.

The Dollar has seen some renewed strength with the number of coronavirus cases in the US increasing. In addition, Speaker of the House of Representatives Pelosi mentioned that both the Democrats and Republicans remain ‘far apart’ on their valuation of a potential fiscal stimulus package. With many countries introducing further lockdown measures, the market is being more risk-averse which has led to a demand for the greenback due to its safe-haven status. US unemployment claims disappointed the market with a release of 898K.