The euro weakened slightly this morning as sterling strengthened on confirmation of the EU’s plans to delay Brexit. European leaders, following eight hours of talks last night, have agreed to a short Brexit extension. If Theresa May’s withdrawal agreement does pass through parliament on a third time lucky, then the delay is until 22nd May. If not, the delay is only until 12th April – and EU sources say that she appears not to have a clear plan for what will happen in that case.
Meanwhile, German manufacturing has fallen to an almost seven-year low and the Markit manufacturing PMI has come in this morning three points below forecast, at a worrying 47.6. Services and composite PMIs provided some relief, coming in at forecast and just above the 50 mark. Nonetheless, they are still on a downward trend, and worries about the Eurozone’s economy continue.
