The Pound has weakened after Bank of England Governor Bailey refused to rule out introducing negative interest rates in the UK, saying that they are actively reviewing it. In addition, EU chief negotiator Barnier has written to his UK counterpart Frost to warn him not to expect a trade deal that is similar to other countries such as Canada.

Yesterday, discussions took place between the two parties about how to implement the special status of Northern Ireland with the UK conceding that checks at the NI border will need to take place. Minister Gove has commented that any checks will be ‘minimal’ although this is unlikely to satisfy the EU.

Eurozone consumer price inflation came out slightly worse than expected yesterday morning, which initially led to some slight Euro weakness. This morning, French manufacturing and services data surprised the market with better than expected readings. However, Germany saw mixed results with a slide in the manufacturing sector but an improvement on the services front. The Euro has made gains against a weak Pound this morning.

The US Senate has passed a bill to prevent certain Chinese companies from selling shares on US stock exchanges. This fuelled further worry about escalating tensions between the US and China which led to the Dollar benefitting due to its safe-haven status. President Trump has also tweeted accusing China of not preventing the virus outbreak which added fuel to the fire. Weekly unemployment claims figures will be released this afternoon which will show how the US labour market is coping with the pandemic. Several FOMC members will be speaking today so the market will take note of their comments on the future path of interest rates in the US which may influence pricy dynamics for the Dollar.