With UK-EU post-Brexit trade negotiations still ongoing, the market will pay attention to any comments by either party made tomorrow which may give some clues as to exactly how much progress has been made. There is currently a lack of news to reflect any positive development which is causing some nervousness. As a result, the Pound has weakened against both the Euro and the Dollar as there is currently a wait and see attitude. UK flash manufacturing and services data will be released tomorrow at 9:30am which is likely to cause some short-term volatility.

Yesterday, final Eurozone consumer price index data came out at 0.4% as expected which gave the Euro some support. Germany has reported an increase of 1,707 coronavirus cases today which has caused concern in the market. Nonetheless, the Euro remains strong against the Dollar and has made some gains against a weaker Pound. The ECB’s monetary policy meeting accounts are due will be released at 12:30pm which will be closely watched by the market.

The FOMC meeting minutes released yesterday evening struck a gloomy tone about the economic recovery in the US. However, members refused to cap government bond yields in an effort to encourage investment and push for economic growth which led to the Dollar showing some strength. US unemployment claims are set to be released at 1:30pm which Is predicted to be released at 930K, with the Philly Fed manufacturing index also due to be released at the same time.