The UK’s chief negotiator Frost has called for ‘realism’ from the EU negotiating party during the next round of post -Brexit trade negotiations which are due to start later today. The EU has mentioned that although they are aiming for a deal to be agreed between both sides, they will be ready for a no-deal scenario if it comes to it. As a result, the Pound has weakened off the back of recent pessimism over Brexit. Scientists are extremely concerned after the number of new coronavirus cases increased by 2,948 which is adding to the Pound’s woes.
Eurozone consumer confidence was released yesterday at -8.0 compared to -11.4 that was forecast which gave the Euro a slight boost against both the Pound and Dollar. The market is waiting for the European Central Bank’s statement on Thursday for any indication for a potential change in monetary policy which will keep the Euro volatile in the run-up to this.
The Dollar has continued to strengthen as tensions between the US and China increased. It has been reported that the US may ban some products made with cotton from the Xinjiang providence. In addition, President Trump has suggested that de-coupling the US and Chinese economies could be a possibility and also mentioned that the US will prohibit the outsourcing of any federal contracts to China.