The Pound has lost some strength as Prime Minister Johnson reiterated that the UK’s position on fishing during post-Brexit trade talks with the EU hasn’t changed and reaffirmed that there will be no extension to the transition period ending at the end of next month. The market will pay close attention to any comments from both negotiating parties before deciding the next directional move for the Pound.
German consumer climate data disappointed the market this morning at -6.7 which was worse than the -4.9 that was expected. Germany has officially extended their lockdown until 20th December with 22,268 new coronavirus cases being reported today. Some Italian officials have called on the European Central Bank to consider wiping out and cancelling the debt incurred during the pandemic to help Eurozone economies recover. Overall, the Euro remains strong against a weaker Dollar.
Although US GDP data came out as expected at 33.1%, unemployment claims increased by 778K compared to 732K that was forecast which kept the Dollar weak across the board. The FOMC meeting minutes released yesterday evening showed that members are considering a broad range of options to help stimulate the US economy which in turn had very little effect on the greenback.