The IMF announced yesterday that Britain leaving the EU would cause problems in the global markets. Today's ECB monetary policy could give hints to how the economy is performing.
Yesterday the IMF announced that Britain leaving the EU will throw a ‘spanner in the works’ of the global economic recovery.
Yesterday the latest set of consumer confidence figures were released for the Eurozone. Although the data released was worse than the previous month, the expected drop wasn’t a sharp as initially thought. Earlier this week the ZEW economic survey was released, showing a sharper decline in attitudes than predicted and highlighted the current tone within Europe after the Brexit.
Theresa May held talks last night in Berlin last night with the German Chancellor Angela Merkel. Germany were recently dubbed the most vulnerable to an economic crisis following the Brexit due to its heavy reliance on exports. This morning, GBP/EUR seems to have strengthened slightly on the news that Angela Merkel and Theresa May seem to be the same terms regarding when Article 50 (the formal process to leave the EU) should be invoked.
Today, Theresa May will be moving across to France to speak with Francois Hollande (French President) to hold similar talks. Although May has hinted that she is not going to start formal negotiations until she has consulted the home nations, any positive news from Theresa May’s first foreign trip in terms of a trade agreement or potential links should be a welcome bout of good news regarding the Eurozone.
Although this is unlikely to have a massive impact on GBP/EUR rates, it may give an indication into the prime ministers intent.
Today see’s the European Central Bank’s latest decision on its interest rate, deposit rate and subsequent meeting and minutes. Although the downside risks have increased within the Eurozone, analysts are expecting today to be a non-event.
Any adverse movements could create extreme swings in the GBP/EUR rate. Any clients with a Euro requirement should be in contact with your account manager during this volatile period.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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