The Pound has strengthened against both the Euro and Dollar despite rumours that the Bank of England may introduce negative interest rates and growing pessimism due to a lack of progress on the trade negotiation front with the EU. This is due to Prime Minister Johnson announcing that non-essential shops will reopen on 15th June if certain conditions are met which was welcomed by the market.

Bank of England Deputy Governor Ramsden has said that the central bank is also considering increasing its level of quantitative easing as early as next month.

Yesterday, German Ifo business climate data came out better than expected which gave the Euro some support against the Dollar. News that Lufthansa has agreed a rescue package worth €9 billion with the German government has been well received by market participants. ECB member Villeroy has said that an economic recovery in the Eurozone is underway thanks to the ECB’s strong reaction but this is likely to be gradual. He also mentioned that the ECB can take further measures if need be and have an element of flexibility, although he believes interest rates will stay at 0% for the time being.

US consumer confidence figures will be released at 3pm this afternoon which is likely to be closely watched by the market for some volatility due to the lack of data being released today. With lockdown restrictions being eased globally and optimism over potential coronavirus vaccines, the Dollar has lost some strength as the market has had a more risk-on approach in the last few days. However, the Dollar is still susceptible to strengthening due to its safe-haven status if tensions continue to increase between the US and China.