It’s been a good economic start to the day for the eurozone, with services and composite PMI figures for France and Germany showing a rise month-on-month. However, the euro is down against the sterling, as the latter benefits from hopes that no-deal might be off the table. Much will be riding on the next few day’s debates in the British parliament, and we’ll likely see more significant movement from political factors.
Less positively, eurozone retail sales later this morning are expected to enter negative territory, although any result better than forecast could help lift the euro.
A Reuters poll shows the majority of respondents expect a rate cut following the ECB’s meeting on 12th September, as the US-China trade war slows growth and fears of a recession in Germany grow.
