Euro is down against the pound after an uptick this morning, as the markets eye a busy week of Brexit developments and economic releases. The ECB’s meeting on Thursday – Mario Draghi’s last – will be closely watched, with policymakers widely expected to announce an interest rate cut and to set out plans for an economic stimulus package. QE will almost certainly, therefore, be reintroduced, but the question remains whether it will be a large-scale programme to buy a lot of assets, or something smaller.
We will also see a lot of key Eurozone-wide figures, including balance of trade, industrial production and wage growth. Brexit will, as always, be a key force in the markets. Britain’s bill to prevent no-deal is close to becoming law, but France is said to not be ready to approve a further extension to the Brexit deadline – so what will happen in the coming days is anyone’s guess.
