The euro strengthened last night on the likelihood of a long extension to Brexit. Donald Tusk suggested that the best option could be a ‘flexible extension’ of up to a year, while Theresa May has just written to the EU to ask for an extension until 30th June.
German Chancellor Angela Merkel said last night that she ‘will do everything in order to prevent…Britain crashing out of the European Union. But we have to do this together with Britain and with their position that they will present to us.’
Yesterday, we had the notes from the ECB’s monetary policy meeting, as which the timing of a first rate hike has been pushed out to at least 2020. German industrial orders also hit their sharpest fall for two years, as foreign demand slowed. Today is a quiet day for releases, although Spanish consumer confidence is expected to come out four points lower than February.
