Given the fact that the majority of the people reading this (and the person writing this) reside in the UK, we perhaps don’t give enough thought to the fact that the EU will suffer if the UK crashes out without a deal. We expect sterling to significantly weaken against the dollar in the event of a no deal and, while we also expect some weakening against the euro, the moves will likely be more muted because of the impacts felt by countries across the eurozone.
Still, there will be 27 nations that can still trade with one another, while we will have to forge new trade relationships with other countries around the world. That will be a lengthy process, so you do have to wonder what would happen in the interim. Then there is the fact that the UK would be so keen to strike new trade deals, that other countries could drive a hard bargain. Let’s hope we can agree a deal.
After a fairly quiet couple of days for the eurozone, today things pick up beginning with the German unemployment rate for November. We will also see the German inflation rate for the same month. In addition, there is a raft of data from the eurozone, with business confidence, consumer confidence, and services, economic and industrial sentiment figures set for release.
