Euro strengthened against the pound last night, as MPs in the British Parliament failed to declare a majority for any of the indicative votes. Manufacturing PMI and unemployment came in as expected yesterday, although manufacturing is showing a downward trend month on month, dropping from 49.3 to 47.5.
However, although Brexit uncertainty helped to buoy the euro against the pound, ECB Vice-President Luis de Guindos told the European Parliament in Brussels that he was concerned about the impact of a no-deal Brexit. He said that ‘markets have not priced in the possibility of a ‘no-deal’ scenario…[Brexit] could be a sort of amplifier of the negative impacts and the downward trends’ in the Eurozone.
Klaas Knot, President of the Netherlands’ central bank, De Nederlandsche Bank, and member of the Governing Council of the European Central Bank, told German media that ‘there could be significant repricing on markets’ in the case of a ‘no-deal’ Brexit.
