The Pound has seen some bouts of strength as the market remains cautiously optimistic regarding post-Brexit trade negotiations after EU chief negotiator Barnier delayed his return to Brussels until Wednesday. Prime Minister Johnson’s spokesman has said that there is a lot of work to bridge ‘significant’ gaps during these negotiations.
German Ifo business climate data released yesterday came out worse than expected at 92.7 compared to 93.1 that was forecast. This led to the Euro weakening against both the Pound and the Dollar. The next major news that could influence the Euro is the ECB interest rate decision and press conference on Thursday afternoon.
The US Senate has been adjourned until 7th November meaning that a fiscal stimulus package being introduced before the presidential election on 3rd November seems unlikely. The Dollar has been volatile – strengthening due to its safe-haven status but weakening at times due to a Democrat win being suggested in the polls.