The euro is weaker against the pound this morning, as sterling is making a quick recovery after the Bank of England decided to carry out an emergency interest rate cut to mitigate the risks of coronavirus.
Worries of disruption to the Italian economy have heightened over the past two days, as the government moved its quarantine of the northern regions to include the entire country. As one of the less-robust Eurozone economies in Western Europe, it is a matter of concern for many investors.
Expectations are also growing for a rate cut from the ECB, whose policymakers will meet on Thursday.
In the meantime, Eurozone GDP growth this morning showed a small drop, although the yearly figures did come in higher than expected.
This morning, there are few releases from the EU, which much focus on the UK’s budget. Tomorrow, we will see industrial production figures, which are expected to show further decline, hitting -4.1% year on year.
