Even though UK manufacturing and services PMI data were both released better than anticipated, the Pound has struggled to make any significant gains against both the Euro and the Dollar with a lack of progress during post-Brexit trade with the EU keeping the Pound under wraps for the time being. The UK has announced that anyone arriving to the UK from Spain must quarantine for 14-days which has led to a backlash from the holiday industry. The Pound is likely to remain subdued until the next round of negotiations with the EU.

On Friday, Eurozone manufacturing and services PMI figures beat the market’s expectations and gave further strength to the common currency against the Pound and the Dollar. ECB member Panetta believes that the central bank’s PEPP monetary stimulus program is working well but anticipates economic activity to stay below pre-coronavirus levels until 2022. German politician Kretschmer has mentioned that Germany is already struggling to contain a second wave with the number of new virus cases rising.

US manufacturing and services PMI’s both disappointed the market and led to the Dollar weakening across the board. It has been reported that Senate Republicans and the White House have an agreement ‘in principle’ over the next coronavirus fiscal stimulus measure worth $1 trillion. US Treasury Secretary Mnuchin has said that the package will contain extended employment benefits such as a replacement for 70% of wages. The Dollar’s safe-haven status is still under threat as the number of virus cases is still increasing in the US, although gold has been the main beneficiary rising above record levels of $1,900.