The government has announced further lockdown measures across the country including East Lancashire, Greater Manchester and certain parts of West Yorkshire after recent spikes of new coronavirus cases in those parts of the country. China’s ambassador to the UK, Xiaoming, has said that the UK’s recent interference with Hong Kong has ‘poisoned’ UK-China relations. Nonetheless, the Pound has made some slight gains against the Euro and is trading above major technical levels against the Dollar.
Yesterday, German preliminary GDP data came out worse than expected at -10.1% compared to -9.0% that was forecasted. In addition, both the Eurozone and Italian unemployment rates were released below forecasts. As a result, the Euro lost ground against the Pound but has continued to make gains against a weak Dollar. ECB President Lagarde believes that the central bank needs to maintain a safety net for the economy until June 2021 at the very least.
US advance GDP beat forecasts but still showed that the US economy contracted by 32.9% in the last quarter at an annualised pace. Unemployment claims were released slightly better than had been anticipated although this did little to help the Dollar’s cause as the greenback continued to weaken. President Trump has also suggested that the presidential election in November may be delayed, although this was immediately rejected by Congress.