UK final GDP data released yesterday coming out as expected at 0.0%, indicating that economic growth for Q4 2019 was stagnant. Manufacturing PMI data is due to be released this morning, which is likely to cause some short-term data-driven volatility.

Overall, the Pound has lost some ground in the past 24 hours. The main focus for Sterling will be any coronavirus related headlines, but also to some extent the future UK-EU trade relationship as some analysts have suggested that the Brexit transition period will need to be extended considering the current situation.

Eurozone consumer price index inflation came out at 0.7% compared to 0.8% that was predicted. Spain has now seen more coronavirus related deaths than China, whilst Italy has seen over 100,000 cases. The Euro is being weighed down by EU members disagreeing over a scheme designed to share debt amongst members (corona-bonds). Dutch PM Rutte is being called to reconsider his position on the matter by his coalition partners.

US consumer confidence figures came out better than anticipated with a release of 120.0, which gave the Dollar a boost along with its safe-haven status. ADP non-farm employment change figures will be closely watched by the market as it is expected to show around 150,000 jobs lost in the private sector. This will set the market’s mood for the release of non-farm payroll figures which will be announced this Friday. FOMC member Mester believes that the unemployment rate could go above 10% considering the low levels of economic activity experienced.