The euro strengthened last night against the pound and dollar as yesterday’s IFO business climate survey for Germany came in above expectations, at 99.6, up from 98.7 last month. However, it did briefly dip this morning following a slightly lower than expected Gfk consumer confidence survey, coming in at 10.4 instead of a forecast 10.8. Tomorrow, we will see consumer confidence for France, expected to stay steady form February.
As always, the main external pull on the euro this week is Brexit. The House of Commons will be holding a series of indicative votes on Wednesday – leaving the path Parliament takes open to any option. That said, Theresa May will not necessarily follow the results of the vote, especially if it’s not in the Conservative manifesto, so uncertainty has only been multiplied.
