CBI industrial order expectations disappointed the market with a reading of -58 compared to -50 that was forecasted which initially led to some Sterling weakness yesterday morning. Former Chancellor Javid has called on the government to cut corporation tax in order to stimulate the economy to facilitate a quicker economic recovery. Japan has given the UK a 6-week timeline to agree to a trade deal with them with officials looking to intensify negotiations. Prime Minister Johnson and French President Macron have both renewed their commitments to try to break the deadlock during post-Brexit trade negotiations.

Eurozone consumer confidence came out as expected yesterday although this was largely ignored by the market. ECB member de Cos has suggested that the central bank is ready to adjust the tools at their disposal to help member states recover from the pandemic and hopes to see the economy recover in the second half of the year. Both German and French manufacturing and services PMI data has beat the market’s expectations this morning which has given the Euro some support.

President Trump’s economic advisor Kudlow has confirmed that the phase one trade agreement with China is not over after trade advisor Navarro announced ‘it’s over’ which led to Dollar weakness. Both manufacturing and services PMI figures are due to be released which will be closely watched by the market. FOMC member Rosengren has commented that interest rates are likely to stay low for the time being and believes that a potential recovery in the second half of the year is likely to be more difficult than expected.