The Pound has remained strong but any further gains have been limited by the lack of progress on the Brexit front. This morning, European Commission President von der Leyen said that differences still remain and that although progress has been made during talks, she can’t say whether a deal will be agreed to or not. Chancellor Sunak will lay out his government spending plans for the next 12 months at 12:30pm with public borrowing expected to increase to £372bn compared to £55bn that was previously forecast.
German ifo business climate data released yesterday morning beat the market’s forecasts which gave the Euro a boost against a weaker Dollar. ECB member Mersch has suggested that the Eurozone may struggle to achieve any economic growth in Q4 2020 with the pandemic having a longer-lasting effect on the Eurozone economy than expected.
Both US consumer confidence and manufacturing data disappointed the market yesterday with worse than expected readings which kept the Dollar weak across the board. US GDP and unemployment claims are due at 1:30pm today which may cause some short-term volatility for the greenback. The FOMC meeting minutes released at 7pm will be closely watched by the market for any indication that members are considering further monetary action to help stimulate the US economy.