The Times has reported that according to Sir Wakefield, the father-in-law of special advisor Dominic Cummings, Prime Minister Johnson is struggling with the effects of the coronavirus and could step down from his role within 6 months. Although this was quickly denied by Downing Street, this helped shift the focus away from no-deal scenario which gave the Pound a boost against both the Euro and the Dollar.
Italy has seen its highest number of new coronavirus cases since 12th May at 1,367. However, Italian health minister Speranza has ruled out reintroducing lockdown measures despite these rising numbers. ECB member Kazimir believes that the central bank should avoid acting on Q2 2020 data and instead wait to see how the Eurozone’s economic recovery will develop over the next few months. As a result, the Euro remains largely unchanged against the Dollar and has lost ground against a stronger Pound.
The Jackson Hole Symposium will be held virtually today. All eyes will be on Federal Reserve Chairman Powell’s speech at 2:10pm for any indication of a potential change in monetary policy in the near future. Both US preliminary GDP and unemployment claims will be released at 1:30pm just before the speech and are likely to cause some volatility for the greenback. The Dollar remains weak for the time being.