Euro is slightly up against the pound, after a day of good economic releases, with retail sales and services PMI coming in better than expected. Nonetheless, the ECB continues to voice its concern over how robust European banks are; Luis de Guindos told policymakers yesterday of his worry that banks don’t have enough capital to allow manoeuvring room in the case of a downturn.
Today, we will see further economic releases, which are not necessarily expected to mirror yesterday’s positivity. German industrial production has fallen into the negative, after recovering briefly last month, and construction is still almost stagnant.
Mid-morning, the European Commission will release its forecasts, and it will be interesting to see how they predict the near future to look compared to other such forecasts, with so much uncertainty swirling around.
