Later this week, British Prime Minister Boris Johnson will travel to the EU to defend the Yellowhammer reports’ leak. Reports were published leaking a confidential Yellowhammer report, conveying several issues regarding the UK’s transport disruption and food, water and medicine shortages. However, the Cable kept steady pace to recover, increasing in value. The GDP/USD pair was traded above the 1.2150 handle. 

The EUR/USD is being traded around the 1.1100 handle as traders hope for German fiscal stimulus and less tensions between the U.S. and China. The German fiscal stimulus was hinted at by German finance minister, Olaf Scholz, who mentioned budget surpluses and austerity for years, amid reports of a less profitable second quarter. He said, ‘The last crisis cost us 50 billion euros, according to my estimates. We have to be able to muster that and we can muster that.’

Tax cuts are being considered by Italy’s ruling League party’s Economics Chief Claudio Borghi, during the 2020 Budget, Reuters reports, in hopes to increase Italy’s deficit. 
 
The USD/JPY pair is being traded in the mid-106.00s region, as the German stimulus calmed down the Asian financial markets amid risk sentiment concerns. Following a downbeat Japanese trade data and higher Treasury yields, the pair moved towards the 106.50 handle.