It’s been a mixed start to the week for the euro, with a slight downtick against sterling and a choppy pattern against the dollar. Poor construction data this morning has not helped, although German factory orders did not come in as bad as expected, despite entering the negative.
European leaders are continuing to call for a ‘common debt instrument’ among the eurozone, to help the worst-hit countries recover. However, the plan’s opponents have yet to give ground; Germany continues to argue that such a scheme would prove a disincentive for countries in crisis to balance their budget or make structural reforms when they have a safety net.
