020 7898 0500Uncertainty from Sunday’s German election result continued to be the albatross around the single currency’s neck yesterday as it slid against sterling and the US dollar. At one point it touched a 10-week low against the pound, before strengthening a little. The euro has also fallen sharply against the Swiss franc as concerns about deeper European integration came to the fore.
News of Catalan’s independence referendum also filtered through to the markets, as the Catalan government plan to hold a vote this Sunday, despite Spain’s constitutional court declaring the referendum illegal. Irrespective of whether or not the referendum goes ahead, it does show how there is potential for further conflict in the region.
It is a quiet day for eurozone economic data today and we expect that continued fallout from the German election will exert influence on any euro movements. Tomorrow we have the German consumer confidence and inflation rate, followed by the business confidence report for the eurozone. While on Friday we’ll get the unemployment numbers from Germany.
