Yesterday was quiet day for the euro, with most waiting for the headline ECB meeting in Frankfurt today. It seems unlikely that interest rates will be raised, and Mario Draghi will likely reach the end of his tenure without ever increasing them.
GDP growth rates and inflation projections are both expected to be slashed, in another sign of troubles in the Eurozone’s economy. Yesterday saw reports that further loaning to banks will be used to support the single currency zone in a global slowdown.
The euro did strengthen slightly yesterday, as talks between Michel Barnier and Stephen Barclay failed to show any breakthrough on the Irish backstop issue. However, the pound soon took back its losses overnight. The EU has, according to the Guardian, given the UK forty-eight hours to come up with a Brexit solution if an altered deal is to be worked out in time for the ‘meaningful’ vote next week.
