The pound has started the week up against the euro and dollar, as the government announced last week that lockdown measures would continue for at least three weeks. Brexit talks are also set to continue via video conference next week, after the first trial last week.
The UK government also confirmed last week that it would not be looking at extending Brexit, which means that negotiators will be under pressure to deliver in an even shorter timespan, and will likely put pressure on both the pound and euro in the future.
Emmanuel Macron has renewed calls for the creation of ‘coronabonds’ to help ease pressure on the hardest-hit EU member states. The idea has proven deeply divisive so far, so the markets will be watching this Thursday’s Eurogroup meeting closely for a hint of a future direction to be taken.
The dollar has started the week weaker against the pound, as the appeal of the dollar as a safe haven declined somewhat over fears of poor economic performance and poor containment efforts against coronavirus, as some join protests to lift lockdowns.
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