The euro strengthened this weekend against the pound and dollar, after a week with some mixed economic releases and fears of a US-EU trade war. The latter have been put a little on hold as the two announced they would progress with trade talks at the end of last week. It remains to be seen, however, whether these talks will cover just the narrow area of industrial tariffs and proof of origin that the EU wants to amend, or will also head into agriculture and other subjects that they would like to avoid.
This week, like for the pound, is relatively quiet. Tomorrow, we have the ZEW economic sentiment index for Germany and, on Wednesday, Italy’s current account figures and balance of trade. German flash manufacturing PMI data will come out on Thursday.
