PMs Proposition Not Promising

GBP

The pound ended the week at a low as concerns mount over whether Britain can agree a Brexit deal at the European Summit later this month. These concerns increased as the European Union's response to Johnson’s ‘new and improved’ deal was not particularly promising. The European Parliament Brexit Group have ‘grave concerns’ over the deal, and Irish Prime Minister Leo Varadkar joined in with this sentiment as he said that the proposals ‘fall short’.

However, the pound can take comfort from the fact that Boris Johnson is likely to seek a postponement to the departure date if he is unable to agree a deal. This has meant that few investors now fear an immediate no-deal exit at the end of this month.

USD

The mixed U.S. jobs report on Friday saw the dollar lose ground as it dovetailed with growing fears around the trade talks with China. U.S. non-farm payrolls came in slightly under expectations as jobs increased by 136,000 last month, missing the forecast of 145,000 jobs. However, the unemployment dropped to a near 50-year low of 3.5%.

Key Announcements

18.00 – USD: Fed Chair Powell Speech.