On Friday, UK construction PMI figures came out worse than forecast at 54.6 instead of 58.5 which put the Pound on the back foot for the day. Prime Minister Johnson has warned the EU that if a deal is not agreed to by 15th October then he will pursue a no-deal Brexit. In addition, the Financial Times has reported that the government is planning new legislation that could override certain parts of the withdrawal agreement which risks UK-EU trade negotiations.

German industrial production data released this morning disappointed the market with a release of 1.2% compared to 4.5% that had been expected which has weakened the Euro. The market is waiting for Thursday’s European Central Bank policy announcement before placing any aggressive bets on the Euro. French finance minister Le Maire has suggested that the recession is not as bad as had been anticipated and hopes that the economy will beat forecasts of an 11% contraction in 2020.

US employment data that came out on Friday beat the market’s expectations, with average hourly earnings rising by 0.4% and the unemployment rate falling to 8.4%. This gave the Dollar strength against both the Euros and the Pound. Federal Reserve Chairman Powell has reiterated that the US economy will need low internet rates for years to come to help stimulate economic growth back to pre-COVID levels.