The Pound has made gains against a weak Euro even though no comments from either the UK or EU have surfaced from the latest round of post-Brexit trade negotiations. UK Trade Secretary is set to lay out the principles that support the UK’s trade policy with the US and EU today. The market is still waiting for any update to do with trade negotiations with the EU before deciding the fate of the Pound.
The Euro remains weak with France imposing a month-long lockdown as expected whilst Germany has introduced a partial shutdown. Analysts believe that if the central bank indicates that they will take action in December at today’s press conference at 2:30pm then the Euro could continue to weaken further.
News that some European countries are going back into lockdown in order to curb increasing coronavirus cases gave support to the Dollar yesterday due to its safe-haven status. US advance GDP and unemployment claims are both due to be released at 1:30pm which is likely to cause some short-term volatility.