The Pound has weakened as the UK and EU failed to come to an agreement over post-Brexit trade negotiations over the weekend, with talks set to continue today. In addition, the new variant of the coronavirus has led European countries to ban flights to and from the UK which is causing travel disruptions and supply chain issues. Prime Minister Johnson will chair an emergency Cobra meeting today in response to this.

On Friday, German ifo business climate data came out better than expected at 92.1 compared to 90.2 that was forecast which gave further strength for the Euro. The common currency has also managed to claw back some recent losses against a weaker Pound over the weekend.

The Dollar has stayed weak against the Euro as the Republicans and Democrats have resolved the main sticking points behind the much-anticipated fiscal stimulus package. Both sides are due to finalise and sign off the $900bn deal that will help individuals and businesses cope with the economic effects of the coronavirus. In addition, Moderna’s coronavirus vaccine has been approved by the Food and Drug Administration which has kept the demand for the Dollar’s safe-haven status low.