The Pound has shrugged off concerns about a no-deal Brexit maintaining most of its gains against the Euro and Dollar after the latest round of UK-EU trade negotiations ended with little progress made. EU Chief negotiator Barnier has said that a trade deal must be reached by 31st October at the very latest and reiterated that an extension to the transition period is still an option the UK can take. UK health minister Hancock believes that a deal with the EU can be agreed if the EU listen to the UK’s ‘very reasonable’ demands.
German industrial production data released this morning showed a decline of 17.9% in the industry which has led to the Euro stagnating after strengthening significantly against the Dollar in the past week. ECB President Lagarde is due to speak this afternoon with the market likely to scrutinise any of her comments after the central bank decided to increase their level of quantitative easing on Thursday.
Although the Dollar lost ground against the Pound and Euro last week, the greenback has found some support after non-farm payroll figures showed that 2.509 million new jobs had been added in May. This figure was predicted to show a loss of around 8 million jobs so this release surprised the market. In addition, the unemployment rate in the US came out at 13.3% compared to 19.4% that had been forecasted. Another US fiscal stimulus package is expected to be announced soon and is predicted to be worth close to $1 trillion.