Euro is down against the pound this morning, as German manufacturing PMI figures came in two points below expectations – and at a worrying seven-year low. Likewise, EU manufacturing PMI came in one point below. With German figures at 43.1, well below the growth mark of 50, fears are being raised of a recession in the eurozone’s largest economy. Deutsche Bank’s troubles continue, as it posted its biggest quarterly loss since the height of the financial crisis, at a net loss of €3.1 billion.
There is more pressure on the euro as the markets await tomorrow’s ECB meetings, as well as after a brief boost after the announcement of Boris Johnson as new UK Prime Minister. Many now see the possibility of a no-deal as more and more probable – which will not be positive for the eurozone, any more than the UK.
The ECB is expected to keep rates as they are, but to pave the way for a rate cut in September.
