Pound Drops vs. Euro on Brexit Fears & Weak Manufacturing Data

The Pound Euro (GBP/EUR) exchange rate is trading flat at €1.1070, holding the majority of Brexit inspired gains from earlier in the week

Covid cases continue to surge and more parts of the UK go into tighter lockdown mode. Rishi Sunak has announced more fiscal stimulus to boost the economy.

UK retail sales and service & manufacturing pmi data is expected to show solid but slowing expansion.

Meanwhile the Eurozone, particularly, France is seeing a marked slowdown in the service sector activity, with a deeper contraction than in September.

Manufacturing activity is expected to show more resilience.