Bank of England Chief economist Haldane has suggested that the economy is recovering quicker than expected from the coronavirus pandemic which in turn led the market to have some doubts as to whether further economic stimulus is needed. This gave the Pound a much needed boost against both the Euro and the Dollar. Haldane is making another speech at midday today which many cause some short-term volatility. UK final manufacturing PMI released at 9:30am came out roughly as expected at 50.1 providing some support for the Pound.

This morning, German retail sales beat expectations coming out at 13.9% compared to 3.5% that was forecasted. In addition, manufacturing PMI figures for Spain and Germany surprised the market whilst the same figure for Italy was released slightly lower than predicted. Eurozone final manufacturing PMI as a whole exceeded analysts’ forecasts with a release of 47.4 compared to the expected figure of 46.9. The Ifo Institute believe that the German economy will recover gradually from the pandemic and see the economy falling by 11.9% in Q 2020.

US consumer confidence data came out better than expected yesterday which helped keep the Dollar strong against the Euro. US Non-farm employment change data as well as manufacturing figures are due this afternoon which will be closely watched and may provide some fresh impetus. China has said that the US have gone too far with regards to sanctions and will retaliate if need be.