Fears of a no-deal Brexit deal has put pressure on the British Pound, which continued to struggle after comments from a Downing Street spokesperson, claiming that the December 2020 deadline will not be extended. 

A second wave of coronavirus cases will continue to hit the Pound’s performance. 

However, the Euro’s performance improved following the proposals for a €750 billion coronavirus recovery fund by the European Union. Traders now eye the Eurozone’s latest business confidence figures, which are forecast that economic sentiment are still struggling. 

Moreover, the U.S.-China trade war dispute, which has been going on for over a year, is being looked at by investors. According to the new security law, Hong Kong has to follow Beijing’s authority and any undermining will be considered as a crime. 

The bill was approved by China’s parliament, imposing a new national security legislation for Hong Kong. China’s National People’s Congress voted 2,878 to 1 in favour of the bill. 

This pushed the U.S. Dollar higher as President Donald Trump stated that they will “do something” regarding the problem. 

Despite the EU’s proposal for the recovery fund, Pound to Euro exchange rate dropped close to a two-month low, around 1.1121.