Worthy competitor found for Brexit news domination

9 March, 2020

Paul Newfield

Last week saw the economic and political worlds further gripped by continued Covid 19 panic; world markets have tumbled and in terms of the pound, particularly against the euro, we are now trading at levels last seen back in mid-october last year. Coronavirus seems to be the most unwelcome distraction from Brexit talks with the EU.

Speaking of which, our chief Brexit negotiator David Frost is currently in Brussels with worrying noises coming from Belgian capital that he and Michel Barnier appear to have “serious” and “significant” differences, although they have promised to “try” and get a deal done before the end of the calendar year when the UK leaves the bloc.

The four main areas of discussion are fishing rights, the role of European judges, remaining aligned to EU rules on goods and agreeing a more “streamlined” legal structure to the overall deal. The UK is, understandably, very resistant to carrying on with the EU’s old ways despite leaving the union. https://www.dailymail.co.uk/news/article-8080735/The-four-rows-sink-EU-deal-Fishing-rights-Euro-courts-goods-trade-deal-legalities.html

The UK was very “data light” last week with very little in the way of opportunity to gain back lost ground but this week we have WEDNESDAY as the only day for significant UK ecostats which may help lighten the load of an increasingly heavy euro, although against the USD it is better news for investors as rates are at one of the highest points we have seen over the past 18 months.

This weeks ecostats:

Monday: German trade figures (already released; mixed)

Tuesday: China CPI, EUR GDP

Wednesday: UK Budget Statement, UK Manufacturing, industrial production and GDP; USD CPI

Thursday: EUR industrial production, ECB interest rate decision, monetary policy statement

Friday: French CPI

As always, stay ahead of the changing markets and keep in touch with your specialist currency consultant to ensure you trade at the best time and best price.