The UK government is now paying wages for 6 million workers through the furlough scheme, with Chancellor Sunak suggesting that a gradual wind-down of the programme is being discussed. Over 100,000 ‘bounce back’ loans have been requested by small businesses so far which is estimated to amount to £3 billion.UK new car sales have fallen to its lowest levels since 1946, which has raised concerns about the UK’s automobile industry with some companies suggesting that car prices will rise.

The UK and US will begin trade negotiations today via video conference. International Trade Secretary Truss and US trade representative Lighthizer have committed to initial talks which will last two weeks with further talks occurring every 6 weeks. Overall, the Pound has made gains against the Euro and the Dollar in the past 24 hours.

Opposition parties in Spain have said that they will not support an extension of the current state of emergency, which raises political uncertainty. Today, the German constitutional court will rule if constraints on the Bundesbank placed by the ECB regarding its level of quantitative easing were legal. The ruling will be closely watched by the market and could cause friction between Germany and the European Commission. The Euro is currently struggling against both the Pound and the Dollar as these underlying issues persist in the Eurozone.

With US government debt at nearly $25 trillion, the US has said that they intend to borrow $3 trillion in Q2 2020 to help facilitate any stimulus packages for their economy. Concerns about the size of this debt as well as escalating tensions between the US and China have contributed to the Dollar strengthening against the Euro. Several reports suggest that US coronavirus related deaths could double to roughly 134,000 in June, with the White House dismissing them. ISM non-manufacturing PMI data is due at 3:00pm, which is likely to cause some short term volatility although the next major piece of economic data for the Dollar that is highly anticipated is non-farm payrolls as well as the unemployment rate on Friday afternoon.