The pound is choppy against the euro this morning, as UK MPs prepare to scrutinise the proposed Withdrawal Agreement. In a week short on economic releases, politics and speculation will set the agenda, with perhaps a respite on Thursday for a series of important eurozone releases.
Germany’s economic affairs minister has said that it ‘goes without saying’ that the EU would grant a further extension to Article 51, although there is said to be dissent from France on further prolongation.
Mario Draghi will step down as President of the European Central Bank, with Thursday’s meeting being his last, and the markets will be watching closely for any hints of future policy changes from Christine Lagarde. Lagarde warned the media yesterday that trade wars were threatening to ‘give a big haircut’ to the global economy, and spoke of her ‘great sadness’ that Britain is ‘drifting away from the European Union…everyone will be a little less well off as a result….Ireland in particular, Germany and the Netherlands.’
