The euro was strong against both the pound and the dollar yesterday afternoon, reaching one month highs against the dollar. This came as the EU and UK managed to strike a Brexit deal and the dollar dropped due to growing expectations of a rate cut from the Federal Reserve.
The German government said it lowered its 2020 forecast for economic growth to 1.0% from 1.5% previously, but added that Europe’s largest economy was not facing a crisis. This followed a series of weak economic data from Germany.
The markets now look towards Saturday’s vote on the Prime Minister’s new Brexit deal, which will determine the path of both the pound and the dollar.
