It’s a choppy start to the week for the euro, with German factory orders coming in worse than expected, albeit still somewhat improved month on month. Industrial production reached 0, up from the negative growth of the previous month. Much of this week will be devoted to political movements, as the Brexit deadline comes ever closer.
The ECB’s bank supervision arm has underlined concerns over the consequences of a worsening global economic outlook, saying that fewer than half of banks in the single currency zone could survive a six-month cash drought. It warned in a statement that ‘banks may have not fully incorporated the effects of competition into their estimates’.
Late Friday, six former ECB officials published a public memorandum to the bank, criticising its fresh financial stimulus package. It argues that the longer the ECB pursues these kinds of policies, the more it will exacerbate negative effects.
This week is relatively quiet for economic releases, with the exception of Thursday, when we will see important figures from Germany.
