Euro is down against the pound, as German inflation came in below expectations at 1.3%. Much of the impact on the single currency this week will be political, with fewer economic releases. The EU is said to be considered imposing tariffs on some $4 billion of US goods, following news that America will add a further series of tariffs on $8 billion of EU goods. If this signals the beginning of a trade war, there could be a lot of uncertainty ahead.
Meanwhile, outgoing ECB President Mario Draghi has called for further financial integration among the bloc, saying tat ‘in some areas’, ‘further integration’ will ‘make the union stronger.’ Earlier this year, European leaders agreed to create a common eurozone budget, but what form that will take has yet to be decided.
