Negotiations between the UK and EU are set to continue today in a final push to agree on a post-Brexit trade deal. Talks were halted on Friday due to significant differences remaining between both parties. However, they resumed over the weekend after Prime Minister Johnson and European Commission President von der Leyen agreed to intensify talks. Irish PM Martin has said that there is a ’50-50’ chance of a deal being struck. Overall, the Pound remains on the backfoot whilst the market awaits further news on the Brexit front.
There are reports that ECB members are likely to agree to an extension of their PEPP programme by one year. Although several members are suggesting a 6-month extension, it is believed that they will still support a 1-year time frame if there is an option to reduce the programme if the Eurozone economy recovers quicker than expected. The Euro remains strong against a weaker Dollar and Pound for the time being.
On Friday, US non-farm payrolls came out worse than expected at 245K compared to 480K that was forecast. However, the unemployment rate and average wages both beat expectations which overall had little effect on the Dollar. The greenback remains weak with the market remaining optimistic regarding coronavirus vaccine approvals which in turn is denting the Dollar’s safe-haven status.