Following on from the Bank of England announcement yesterday, the Pound performed well against both the Euro and the Dollar although it has lost some of its gains since. The market remains optimistic about the recovery of the UK economy after the central bank upgraded its 2020 forecasts. Chancellor Sunak has reiterated that the furlough scheme will not be extended past October which is raising concerns about what the state of the UK labour market will be after the scheme ends.

This morning, both German and French industrial production figures came out better than expected which has given the Euro a boost against the Pound and Dollar. This follows on from Italian industrial production released yesterday morning which surprised the market. German health minister Spahn has suggested that another lockdown could take place if the number of coronavirus cases continues to rise with over 1,000 new cases reported yesterday which is the first time since early May this has occurred.

US unemployment claims saw a release of 1186K compared to the forecasted figure of 1410K which gave the greenback some strength over the course of yesterday afternoon. In addition, President Trump has signed an executive order banning transactions being made with the Chinese owners of WeChat and TikTok. This escalated tensions between the US and China which saw the greenback receive a slight boost due to its safe-haven status. At 1:30pm today, the US unemployment rate, average hourly earnings and non-farm employment change figures will all be released which will cause some volatility.