The Pound initially gained strength yesterday as EU chief negotiator Barnier said that the EU is willing to ‘intensify’ trade negotiations with the UK this week to try to break the deadlock. Minister Gove welcomed this comment although he did say that a no-deal Brexit is a scenario the government as increasingly preparing for. However, No 10 later released a statement indicating that there is ‘no basis to resume talks’ unless the EU is willing to compromise. This led to the Pound losing ground and wiping out all of its recent gains.

Germany has recorded 6,868 new coronavirus cases today which has led to the market staying cautious over further restrictions being introduced soon. ECB member Holzmann has suggested that there is no need for further measures to be taken by the central bank at the next policy meeting on 29th October and will likely take a wait and see approach.

The Dollar has remained weak as hope for a COVID vaccine being released by the end of the year led to the market taking a risk-on approach which impacted the greenback’s safe-haven status. Speaker of the House Pelosi has said that a deal with the Republicans over the next fiscal stimulus package could be pushed through before next month’s presidential election which also contributed to a weaker Dollar.