On Friday, EU chief negotiator Barnier mentioned that areas of discussion that were expected to see the most progress were disappointing which suggests that there was little progress in post-Brexit trade negotiations that took place throughout the week. He also suggested that the UK needs to decide whether to extend the transition period by June, with this news initially weakening the Pound.

However, Prime Minister Johnson has returned to work today and will chair this morning’s cabinet meeting on Covid-19 which has given the Pound a boost against both the Euro and the Dollar. Health Minister Hancock has said it is too soon to change current lockdown restrictions as it risks causing a second peak of the virus. PM Johnson has reportedly been discussing the possibility of modifying the lockdown instead of lifting it altogether.

Italy has announced its outline to gradually ease lockdown restrictions from 4th May as there were only 260 new deaths recorded on Sunday – its lowest figure since 14th March. This news has given the Euro a slight boost against the Dollar. Rating agency Standard & Poor’s have maintained their negative outlook on the Italian economy with a rating of BBB and forecasts that the unemployment rate could rise to 11.2% this year. The German government is reportedly expecting to see their economy contract by up to 7% this year which is keeping any major gains from materialising for the Euro.

The Dollar weakened on Friday afternoon after US durable goods orders fell by 14.4% for the month of March which is its biggest decline since 2014, after market participants decided to profit-take after the Dollar’s recent strong performance. President Trump has signed a fourth economic stimulus bill into law in response to the coronavirus pandemic worth $484bn which aims to help small businesses even further. The US death toll has increased to over 50,000 whilst the number of cases remains high at around 900,000.