The euro regained some of its ground against sterling yesterday, but dropped to a near 3 year low against the dollar this morning ahead of today’s economic releases. Expectations are mixed; although the eurozone as a whole is forecast to show an increase in economic sentiment, Germany’s is expected to drop.
Concerns over the upcoming trade talks continue, with France’s Foreign Minister Jean-Yves Le Drian saying that the two sides would ‘rip each other apart.’
The European Union is also facing internal problems, with its budget proposals criticised by the so-called ‘Frugal Four’ (the Netherlands, Denmark, Sweden and Austria). The four issues a statement saying that they would not back the proposed target, which would ‘increasingly’ put the ‘financial burden of the union…on the shoulders of a small number of member states’.
