EUR: quiet day for eurozone, as Brexit steals headlines once more

Given everything that was happening with Brexit yesterday, it’s perhaps just as well that there weren’t any major economic data releases from the eurozone. We did see
wholesale prices from Germany on the schedule, which came in line with expectations for September at 0.4% from 0.3% in the previous month.

The euro made some gains against sterling, but that was owing to continued Brexit uncertainty and poor retail sales data from the UK. Against the dollar, the movements were
very slight. It is another quiet day for economic data today, so any movements in the single currency will almost certainly come about from events elsewhere.

Theresa May is under increasing pressure to explain her position, but it is impossible for her to draw a line in the sand and say “This! This is what I am asking for!” because
it will infuriate MPs on one or both sides of the argument. The knives are out and you really do have to feel sorry for her. Until some clarity is forthcoming, the pound will
be treading a tightrope, while will likely lead to dollar and euro strength. Still, EU leaders will be concerned over the prospect of a no deal, as it will significantly
affect them to.