020 7898 0500The same US dollar scepticism on future growth, combined with a more stable political outlook in the EU, saw the euro push higher against the US dollar. The Eurozone’s current account surplus fell to its lowest in a year in January as exports fell.
On the Brexit front we saw more signs of a tough few months ahead for the divorce proceeding between the Eurozone and UK. Firstly, there were more reports surrounding the bill to cover the UK’s liabilities to the Eurozone bloc (rumoured to be €60 billion). UK government officials are questioning both the size of the bill and whether there is any legal requirement for them to pay it at all. The EU is threatening the UK with court action if it tries to walk away without paying. It was also reported that EU officials are preparing for the UK to walk out of Brexit talks without a deal.
On the subject of walking out, it was reported that the European Central Bank (ECB) is willing to fast-track various global bank’s exit from London if requested. It has been suggested that if banks meet British regulatory standards then the ECB will waive the examination of their financial models should they choose to move into the Eurozone.
Looking to the day ahead we have the German consumer confidence figures. A positive figure will boost the euro.
