Euro is up against the pound this morning, benefitting from downward pressure on sterling after Boris Johnson said an election may be on the cards. Meanwhile, the EU is considering using its solidarity fund, usually used for natural disasters, to help EU members with a no-deal.
Today is largely thin on the ground for economic releases, although the Bundesbank’s Burkhard Balz, who has previously called for Europe to ‘get off the sidelines’ of financial innovation, will speak later today. The markets will therefore largely be dictated by today’s political events across the Channel
While the single currency is benefitting from sterling’s weakness, it’s a different story with dollar. On Monday, the euro hit a two-year low, after low manufacturing performance strengthened expectations that the European Central Bank will ease monetary policy at its upcoming meeting next week.
