With the number of new coronavirus cases reaching 14,162 yesterday in the UK, the government is widely anticipated to introduce further restrictions in certain parts of the country. In response to the increasing cases, Bank of England Governor Bailey has said that he does not believe a second wave will have the same economic impact as the first. This has given the Pound a boost against both the Euro and the Dollar. UK Chief negotiator Frost has said that they are working very hard to come up with a deal with the EU.

ECB President Lagarde reiterated her recent comments yesterday by indicating that the central bank needs to maintain a decent level of stimulus in order to reach its goals and stressed the importance of a coordinated fiscal response as well. She also mentioned again that the path to recovery is uncertain, with the number of cases in Germany going up by its highest amount since April. The Euro remains fairly stagnant for the time being.

The Dollar has continued to lose strength after President Trump’s tweets renewed hope for a vaccine and a fiscal stimulus package, with the greenback seeing a lack of demand due to the risk-on approach by the market. FOMC meeting minutes released last night revealed that members were concerned about the lack of fiscal support which could jeopardise the economy’s recovery. US unemployment claims are due at 1:30pm which may cause some short-term volatility for the Dollar.