Euro is down against the pound and dollar following record lows in German consumer confidence and as the markets await this afternoon’s Eurogroup meeting. The virtual summit is intended to help the member states come to agreement over the second phase of coronavirus economic rescue packages, which EU officials have said will need to be to the tune of €500 billion.
The previous meetings have been deeply divisive, with a clear split emerging between the wealthier northern countries and their southern neighbours, who have also been hit hardest by coronavirus. Perhaps the most difficult issue was that of so-called coronabonds, or Eurobonds, which was eventually shelved. Emmanuel Macron, however, has said he intends to bring the debate back, so it will be interesting to see if any progress is made.
European consumer confidence figures, released yesterday afternoon, didn’t show the same positivity that investors had shown earlier this week, with readings dropping further than forecast. German consumer confidence this morning hit a record low, putting further downward pressure on the euro.
