The Pound has strengthened after the UK said that they are ‘willing to welcome’ the EU for further post-Brexit trade negotiations following a telephone call between UK negotiator Frost and EU chief negotiator Barnier. Frost has confirmed that talks would restart today in London. Although both sides agreed to intensify talks, a statement from No.10 suggested that there are still ‘significant gaps’ and a no-deal Brexit is still a possibility. The market will pay close attention to any comments coming out of the latest round of negotiations from both sides.
Germany has recorded 11,287 new coronavirus cases which has renewed calls for tighter restrictions in Europe’s largest economy. Italy has also had 15,199 new cases in the last 24 hours. The Euro has weakened against a stronger Pound and has halted its momentum against the Dollar for the time being. The market is waiting to see what effect an increase in virus cases will have on the Eurozone economy and if the ECB will take any further action.
The Dollar remains weak for the time being due to a lack of demand for its safe-haven status. However. President Trump accused Democrats of being unwilling to compromise in order to agree on a fiscal stimulus package. As a result, some market participants are doubting that a deal with be agreed to by the 3rd November presidential elections which is leading to some respite to Dollar bulls. Weekly unemployment claims is due at 1:30pm which may cause some volatility for the greenback.