Today, UK-EU post-Brexit trade negotiations are due to resume and will be the focus for today due to a lack of economic data being released. However, with neither side expecting a breakthrough a high-level meeting between Prime Minister Johnson and European Commission President von der Leyen will take place later this month with UK officials hoping that this will create ‘political momentum’.

It has been reported that the UK will compromise on certain issues if the EU lower their demands on fishing and alignment from a regulatory standpoint, with the Pound strengthening as a result.

Although Eurozone manufacturing data was released as expected, the Euro initially lost momentum against the Pound and Dollar. But news that Germany is preparing another fiscal stimulus package worth between €50-€100 billion and predictions that the ECB will increase their quantitative easing programme tomorrow has given the Euro some renewed support against the Dollar. This is despite comments from French finance minister Le Maire that suggests that the French economy will contract by 11% this year.

US manufacturing PMI data came out much worse than expected yesterday afternoon, which led to the Dollar weakening further against the Pound. The greenback was also under pressure due to the riots in the US due to the death of George Floyd by police in Minneapolis, with President Trump warning that he will deploy the military on the streets to end the protests. To add to this, the Dollar’s safe-haven status continues to be undermined by positive Chinese economic data which signals a quicker recovery than expected.