Reuters have reported that the EU is willing to give concessions to the UK regarding their approach to fisheries during next week’s UK-EU post-Brexit trade negotiations, which has given the Pound a boost against the Euro and Dollar. The Bank of England’s Chief Economist Haldane believes that the UK economy has contracted by 20% in Q2 2020 and confirmed that the central bank is reviewing the possibility of introducing negative interest rates in the UK.

German consumer climate data surprised the market with a better than expected release which helped the Euro maintain its recent strength against the Dollar. However, the ECB warned during their annual financial stability review that governments across the Eurozone will have budget deficits above 8% of GDP on average which could put pressure on the more vulnerable countries in the area with Italy, Greece, Spain, France and Portugal all mentioned in particular. There are rumours that the ECB could launch infringement proceedings against the German Bundesbank if they fail to partake in their quantitative easing program.

US consumer confidence came out worse than expected yesterday with a release of 86.6 compared to 87.1 which was forecasted which led to some Dollar weakness. Chinese President Jinping has said that China is stepping up its military strength to combat protests in Hong Kong, which risks escalating tensions with US President Trump. Manufacturing data is due at 3pm today which may cause some short term volatility for the greenback.