Euro is down against the pound, as concerns over Brexit continue. The EU’s negotiating team has become more vocal over the impact of the UK leaving, even with a deal – described by Michel Barnier yesterday as a ‘lose, lose’ situation. He also warned that trade talks are likely to be long, and may extend beyond the planned 2020 deadline.
Meanwhile, the Hungarian Central Bank’s governor, György Matolcsy, has said that eurozone countries must be able to leave the single currency zone, claiming that ‘the majority of member states did not benefit from it later [than 1999]’, echoing the Eurosceptic stance of the Hungarian government.
Poor performance by large eurozone banks, including Deutsche Bank continue to concern observers, amid a climate of a general economic slowdown. However, retail sale data for the eurozone are expected to show an increase year-on-year. The ECB will also hold its non-monetary policy meeting this evening, Lagarde’s first.
