With the number of daily coronavirus cases still above 20,000 in the UK, there are reports that Prime Minister Johnson is under pressure to announce a national lockdown. Nonetheless, the Pound has continued to strengthen with the market taking a cautiously optimistic approach to ongoing Brexit trade negotiations. However, European Council President Michel has said that trade talks between the UK and EU are at its ‘most difficult point’ which has put the market on alert.

There are rumours that Germany is contemplating going back into lockdown after a surge in coronavirus cases. France is considering a one-month lockdown as they struggle to reduce daily virus cases as well. Analysts believe that pressure is increasing for the ECB to take further action to stimulate the Eurozone economy which is weakening the Euro.

The Dollar remains volatile due to its safe-haven status. On one hand, talks of further lockdown measures in the Eurozone have pushed investors to take a more risk-off approach which has given the Dollar strength at times. On the other hand, the greenback has experienced bouts of weakness with Democrat Biden ahead in the presidential election polls.