UK business secretary Sharma believes that the economy must continue to reopen in a phased and sensible manner. This coincides with the recent announcement from Prime Minister Johnson suggesting that schools will remain open, as the idea is to get parents back to work to stimulate the economy after the summer holidays. As a result, the Pound has made gains against both the Euro and the Dollar in the past 24 hours.
The Euro remains supported against the Dollar with German finance minister Scholz suggesting that their economy is recovering at a quicker rate than had been anticipated. German ifo business climate data came out yesterday morning as expected at 92.6. In addition, the Ifo Institute has forecast economic growth of around 7% in Q3 2020 which the market views as a positive.
US CB consumer confidence experienced a decline to 84.8 which was worse than the previous reading and lower than 93.0 that was forecast. However, the Richmond manufacturing index surprised the market with a release of 18 compared to 10. The Dollar remains weak in anticipation of Thursday’s virtual Jackson Hole symposium which will be monitored by the market for any signs of a potential change in the Federal Reserve’s monetary policy stance.