The Pound has weakened slightly with reports coming out that the EU may not offer any concessions to the UK in the next week as they are willing to call Prime Minister Johnson’s bluff and drag trade talks into November and December. There are suggestions that Johnson will have to bring in tougher lockdown measures as the number of coronavirus cases are still increasing in the UK.
The Euro has weakened as ECB President Lagarde indicated that Europe’s economic recovery is still uncertain and incomplete. German industrial production data released this morning came out worse than expected at -0.2% compared to 1.5% that was forecast which has put the Euro on the back foot this morning.
The Dollar has strengthened due to its safe-haven status as President Trump has decided to cancel talks with the Democrats over a fiscal stimulus package which was aimed at stimulating economic growth in the US. FOCM member Mester has said that lots of businesses and households still need help, pointing towards fiscal policy for help.