Yesterday evening, it was officially announced that current lockdown restrictions will be in place for ‘at least’ another 3 weeks as expected. In addition, Foreign Secretary Raab suggested that the UK will need to ‘reconsider its relationship with China’ following the pandemic. UK chief negotiator Frost has said that they will not be extending the transition period beyond December 2020, with a spokesman for Downing Street suggesting an extension would ‘prolong the delay and uncertainty’ surrounding Brexit.

The Pound remains resilient to this news for the time being, with the market choosing to remain optimistic about the three rounds of post-Brexit trade negotiations announced earlier in the week.

French President Macron has suggested that the EU risks collapse unless countries such as Spain and Italy are supported by less effected countries in the Eurozone such as Germany to help them recover. ECB President Lagarde has also warned of ‘deteriorating labour markets’ across Europe as a result of the virus outbreak. Eurozone industrial production came out as expected but still saw a decrease of 0.1% in activity in the sector. Overall, the Euro remains weak against both the Pound and Dollar.

US unemployment claims came out better than expected yesterday with a figure of 5245K compared to 5350K that was forecasted, which initially gave the Dollar a boost just after midday. However, the focus then shifted to worse than expected manufacturing data which led to the Dollar losing its gains and settling around the same levels as earlier in the morning. The Chinese economy has contracted by 6.8% in Q1 2020, which is the first time since 1992 for this to occur.