The Pound has been stagnant against the Euro but has made gains against a weaker Dollar. The number of coronavirus cases surged past the 60,000 mark in the UK which is keeping Sterling from strengthening. Bank of England Governor Bailey is due to speak later this afternoon. The market will pay attention to any comments from him regarding the introduction of negative interest rates in the UK.
The Euro remains well supported against both the Pound and Dollar. Yesterday morning, German unemployment change data beat the market’s expectations at -37K compared to 10K that was forecast. German finance minister Scholz has said that the country can cope with a lockdown extension as they will likely incur less debt during the pandemic than during the 2008 financial crisis.
The market is waiting for the results of the US Senate runoff elections in Georgia, although the Democrats have a slight edge over the Republicans. If the Democrats win then they will control the Senate majority which would make President-elect Biden’s ability to pursue his own policies easier. As a result, the Dollar has weakened as investors take a more risk-on approach.