Euro was down against the pound, after French and Italian industrial production came in worse than expected yesterday. Fears of a no-deal do continue to weigh on both currencies, as Guy Verhofstadt joined with French officials in calling for a veto of any further Brexit extension without a change in circumstances.
The Bank of Portugal has published research warning of high public debt – such as in countries like Portugal and Italy – as all the more problematic for nations that are part of a monetary union, like the eurozone, as policy is much less autonomous. It’s another warning of the potential problems ahead, especially if Italy’s debt continues to grow.
Today is relatively quiet for economic releases, with just Spanish industrial production, which rose by 0.8% from a year earlier, missing expectations of a 1.5% gain. The markets will be looking forward instead to tomorrow, with the ECB’s rate decision, as well as German and French inflation and European industrial production.
