The pound is continuing its good form on the week
The pound initially shrugged off UK finance minister Sunak’s new announcements to bolster the economy yesterday but they remain part of the more supportive factors in the background, despite some skepticism still abound surrounding the UK economy.

Once again, Wall Street holds all the cards in terms of trading sentiment
European equities are mixed in trading today, though the DAX is seeing decent gains of just over 1% on the session. But the risk mood is not hinting at much with US futures keeping closer to flat levels ahead of North American trading.

Latest data from the Mortgage Bankers Association for the week ending 3 July 2020
– Market index 775.9 vs 758.9 prior
– Refinancing index 3,373.9 vs 3,359.2 prior
The standout once again in the report here is the rise in purchases, with the index rising to its highest level since 2009.

Comments by German chancellor, Angela Merkel
– Expects ‚good cooperation‘ with EU partners
– Germany determined to help EU overcome virus crisis
The next week or so is going to be crucial for European assets as all eyes will turn towards the progress on the recovery fund ahead of the 17-18 July summit. European Commission president von der

Forex news from the European trading session – 8 July 2020
Headlines:
Markets:
– Major currencies little changed
– European equities lower; E-minis up 0.1%

UK finance minister, Rishi Sunak, updates parliament on the government’s latest spending plans
– Our plan will protect and create jobs
– Job losses are the most urgent challenge we face
The main challenge for the UK will be to try and stop the bleeding in the labour market over the next few months – especially when moving

US futures keep close to flat levels while European stocks are softer
After a back and forth last two days, the risk mood today is looking rather tepid for the most part with investors looking towards Wall Street for more direction.

There will be meetings between the UK and EU throughout July
entire month
That said, both sides have mentioned that negotiations are set to only enter a „hot phase“ in September so that is likely where the real action will be at on Brexit.

Forex news from the European trading session – 7 July 2020
Headlines:
Markets:
– GBP leads, AUD lags on the day
– European equities lower; E-minis down 0.8%

Bloomberg reports, citing people familiar with the matter
The sources cited also mention that the BOJ continues to see a high degree of uncertainty surrounding the economy, but developments since April have been more or less panning out according to the central bank’s forecast.