Euro had a choppy week against sterling, ending slightly down against the pound after Eurozone construction output dropped substantially to -0.9%. Automobile sales also dropped 50%, according to figures published by ACEA. Meanwhile, there is more uncertainty ahead for the Eurozone, as Emmanuel Macron renewed calls this weekend for ‘coronabonds’, saying the EU could fail as a political project if it does not help the worst-hit member states.
This Thursday’s EU video meeting, then, will be closely scrutinised for any signs of a progression on the issue. Policymakers will be discussing options for a further rescue package, which the Eurozone’s bailout funds chief has said should be at least €500 million.
Later this morning, Eurozone balance of trade figures are expected to show a drop. We will see a number of economic releases over the next few days, although, interestingly, German economic sentiment is expected to come closer to re-entering the positive – perhaps helped by the sentiment that the country is slowly exiting the peak of coronavirus.
