The Pound has continued to stay weak against the Euro and the Dollar with concerns rising about the number of new coronavirus cases in the UK. This in turn is creating some nervousness in the market as the furlough scheme is set to end in October. In addition, a lack of progress during the latest round of UK-EU trade negotiations is keeping the Pound from making any gains. France has imposed a 14-day quarantine on anyone traveling from the UK in retaliation for the UK introducing the same measures.
This morning, German final GDP data came out at -9.7% compared to the -10.1% that was anticipated by the market although this has had little effect on the Euro. This is because this figure still confirms Germany’s biggest quarterly economic contraction on record during Q2 2020. Belarus is still experiencing mass protests as many believe that the latest election results were rigged so that leader Lukashenko can serve another term.
Yesterday, the Dollar strengthened slightly in the early parts of the morning as President Trump approved the use of plasma to treat coronavirus patients. However, the greenback weakened overnight as both the US and China acknowledged the progress made regarding the phase one trade agreement which led to the market taking a risk-on approach. US CB consumer confidence figures as well as the Richmond manufacturing index will be released at 3pm which may cause some short-term volatility for the greenback.