The Pound has strengthened slightly after a phone call between UK negotiator Frost and EU chief negotiator Barnier yesterday. Frost mentioned that the call was ‘constructive’ but official negotiations would not resume for the time being. Barnier responded suggesting that the EU is open to carrying on negotiations with the European Commission proposing to intensify talks.

Italy’s economy minister Gualtieri has said that economic growth in 2021 could be better than expected if the second wave of the coronavirus can be contained. Ireland has introduced a six-week lockdown as the country moves into the highest level of restrictions due to a surge of cases. Analysts believe this will put 150,000 jobs at risk over the coming days. The Euro remains stagnant against the Pound but has made gains against a weaker Dollar.

The Dollar has continued to weaken as the market remains optimistic that the Democrats and Republicans will reach an agreement over a fiscal stimulus package which undermined the greenback’s safe-haven status. In addition, President Trump has said that he is willing to offer a bigger package even though other Republicans are against this.