Uncertainty over the European Union’s response to coronavirus has helped push the single currency down to almost a three-week low against the pound. Disagreement over the so-called ‘coronabonds’ between many southern European states and German, the Netherlands, Austria and Finland is slowing down implementation of further policy.
Coming on the back of budgetary disagreements on the same line, it makes investors uncertain about the precise direction European monetary policy will take, both during and after the crisis.
This morning saw further pressure put on the euro as Italian, French, German and Eurozone-wide services and composite PMI figures fell to long-term lows.
