020 7898 0500Last week was dominated by the euro on its back foot against the US dollar and sterling. With the two other currencies seeing some strength, the single currency had one of its worst weeks since the UK voted for Brexit.
The main reason for this is the new President Elect, and his possible effect on post-Brexit Britain. A US-UK trade deal when May and Trump sit down could look very attractive, giving pro-Brexiters justification that trade deals with Europe were not as important as pro-EU market participants were stating. Trump has confirmed he wants to see Theresa May first when he kicks off in January. This opens the door to an earlier trade deal with the US, compared to what Obama offered, which could make our economic prospects outside of the EU much brighter.
This week sees most Eurozone data weighted to Tuesday, with growth figures and German ZEW data due. Thursday sees inflationary data too, but it’s the ongoing global political environment which is likely to drive the euro.
