The pound is drifting down against the euro this morning, as speculation mounts of very little progress made in this week’s round of Brexit talks. Both sides are reportedly still reluctant to shift from their red lines.
German GDP figures have just come in, showing a 2.2% drop and taking the Eurozone’s largest economy from stagnation to contraction. Although not unexpected by the markets, it could nonetheless have some impact on the euro this morning. We will also see Eurozone-wide figures at 10am, which are also forecast to show an entry into negative figures.
The dollar is up against the pound this morning, with Donald Trump surprising observers by going against his usual position and saying he approves of a ‘strong dollar’, claiming ‘I kept it strong’. Tensions with China continue to rise, with Trump using the same interview to say he could sever ties with Beijing completely.
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