Euro has started this morning slightly up against the pound, helped by a recovery in German stocks from its previous three-month low. Nonetheless, GDP figures have just come in showing a 2.2% drop in Germany, so we may see further movement today. Eurozone-wide figures are expected at 10am this morning.
The European Central Bank’s Luis de Guindos, speaking again last night, said that he is in favour of the ECB acting ‘with more intensity’, saying that high levels of indebtedness are going to be ‘the legacy of the crisis’. He warned that if financial stabilisers are not in place, the recession could be ‘much deeper’ than ‘eight percent or nine percent’.
Nonetheless, he did also argue that, given the international competitiveness of European businesses, once a vaccine is found, he expects there to be strong possibilities for a recovery.
Meanwhile, the European Central Bank has been accused of ‘ignoring’ Germany’s Constitutional Court’s ruling against its QE programme, saying that ‘the ECB is not under the jurisdiction of the German Federal Constitutional Court, but under the jurisdiction of the Court of Justice of the European Union.
