Euro is up against the pound, as fears of a no-deal Brexit continue to weigh. Reports have emerged that the European Union may be prepared to offer an extension until June, while The Times claim that the EU might be willing to offer concession in a deal – although Angela Merkel is said to have called it almost impossible.
In short, no-one quite knows what will happen, and, while it is currently to the euro’s benefit, no-one can say how long this will last.
The Bundesbank’s President, Jens Weidmann, told an audience earlier this week in Vienna that the ECB should not question limits on its bond-buying programme, including a ban on buying more than 33% of the debt of any individual government. His stance looks set to cause further disagreement in the future as Christine Lagarde assumes the Presidency of the ECB.
German Balance of Trade figures were released this morning, showing that Germany’s trade surplus narrowed to EUR 16.2 billion in August 2019 from EUR 17.6 billion in the same month last year. Exports declined 3.9 percent year-on-year to EUR 101.2 billion, while imports shrank 3.1 percent to EUR 85 billion.
