Euro saw a slight strengthening against the pound as German industrial production figures showed an unexpected increase. Where the markets had expected a fall of 0.5 percent, they actually came in at plus 0.5, continuing the upward movement from last month. This now makes four months since the figures have dipped below zero.
The EU’s economic forecasts were released yesterday, showing an expectation for economic expansion to continue at a rate of 1.2%, a slight reduction from previous forecasts. They highlight the continued uncertainty of missed deadlines for Brexit and US-China trade negotiations and this impact on the world economy, including that of the eurozone. However, in a reminder of how forecasts can be nothing but a guide, it also said that the ‘sharp slowing in euro area growth in 2018 has come as a surprise.’
It was confirmed yesterday by David Lidington that the UK would definitely not still be seeking an exit before the EU elections. Nonetheless, Theresa May said she is still hoping Parliament will agree a Brexit plan before MEPs actually take their seats. Talks with Labour have resumed, although nothing concrete has yet emerged from them.
