The next round of Brexit negotiations is scheduled to begin on the 17th August with neither party seemingly ready to compromise over key issues such as fishing and competition. Further UK-US trade talks will take place over the next two days with both Trade Secretary Truss and US trade representative Lighthizer meeting. A major incident has been declared in Greater Manchester with the number of coronavirus cases increasing, leading to further lockdown restrictions coming back into place. The Pound is experiencing volatility with the market waiting for more news to do with a trade deal with the EU.
Although Eurozone flash consumer price inflation estimates came out slightly better than expected, preliminary flash GDP data disappointed the market which led to the Euro weakening slightly. German Minister of the State for Europe Roth has said that there will be ‘no business as usual’ between the EU and China due to the situation in Hong Kong and urged EU member states to not ‘be afraid to lock horns’ with China. The Euro remains strong although it has lost some ground against both the Pound and Dollar.
Democrats and Republicans are scheduled for further talks regarding the next coronavirus response bill, with current measures ending at the end of July with no replacement so far. Tensions between the US and China have escalated over topics such as Huawei and Hong Kong which led to the Dollar strengthening slightly as its safe-haven status came into play once again. US manufacturing data is due for release this afternoon which may cause some short-term volatility for the greenback.