It’s been a choppy week so far for the euro, as uncertainty over Brexit returns following Boris Johnson’s announced intention to put the transition period deadline into law. It raises fears that the UK and European Union could end the period without a ‘proper’ trade agreement, and potentially even revert to WTO rules.
The European Central Bank’s Benoît Cœuré, speaking in Frankfurt yesterday a few days before resigning his post, warned that central banks’ financial methods are of ‘little avail if the public does not recognise or understand them.’ However, he argued, the ECB’s stimulus policies have helped to boost investment and therefore job creation, and helped wage growth to speed up.
Yesterday, German business climate figures came in slightly better than expected, as did current conditions – positive data from an economy that has had some difficulties over the past few months. However, eurozone construction figures showed an unexpected decrease in an already poorly performing sector.
Today, there is little on the data front, but we will see a number of speeches from ECB figures and, of course, anything outlined in the Queen’s Speech in the UK around Brexit will likely make an impact.
