The euro fell to it’s lowest since July against the dollar yesterday, as the markets continue to digest the ECB’s dovish meeting last week.
The UK and the EU have agreed that Brexit talks need to intensify as the deadline approaches, with meetings expected to take place on a daily basis. However, although Boris Johnson says he is cautiously optimistic about a deal, the European Commission says that the UK has yet to present any concrete plans.
Tomorrow we will see ZEW Economic Sentiment Index figures for Germany and the Eurozone. Both are expected to be in the negative, but to show a slight recovery from the previous month.
The US has criticised the EU’s new appointment for its next trade commissioner, Phil Hogan. US Ambassador to the EU Gordon Sondland criticised Hogan for being ‘unhelpful’ and ‘very condescending’ after he criticised Donald Trump.
Sondland went on to say, ‘I don’t think you want someone handling the EU trade portfolio whose sole approach is belligerence, because that just results in an impasse, a stalemate and then people start to do things that you don’t want them to.’ There could be a bumpy road ahead for relations between the two trading partners, as the Ambassador once again raised the possibility of a trade war, saying ‘However, if negotiations between the U.S. and EU don’t elicit a change…then the United States will suspend concessions and resort to tariffs.’
