The euro continued to weaken against the pound yesterday, with GBP/EUR hitting 1.171. A possibility of an extension to Article 50 in the UK strengthened the pound, while poor economic performance in the Eurozone didn’t help the euro.
It was a busy day yesterday for economic releases. The economic sentiment and services sentiment indices came in as forecast, more or less unchanged from January. Industrial sentiment sharply deteriorated, forecast to drop from 0.6 to 0.1 but coming in at -0.4, in another sign of the Eurozone’s slowing economy.
Today is quiet on the economic release front, with focus largely on Brexit. Friday will see a bit more activity, with flash inflation rates and unemployment rates for January.
