This morning the latest Industrial Production data for the Eurozone will be released with the Month on Month data for November expected to be up from 0.2% to 0.8%. However, the Year on Year figure is forecast to be down from 3.7% to 3.0%.

Over the last six months there has been a huge amount of positive data for the European Union and this looks as though it could be set to continue. There is a slight concern potentially that over a longer term the recent data doesn’t look exceptional, but positive movement suggests the short-term trends will continue.

EU Commission warns UK-registered businesses

The EU yesterday released memos to UK-registered businesses warning that current arrangements in place will be ended should the UK leave the EU with no deal. This essentially is a warning that businesses could be forced to move into the Eurozone should they want to continue trading under existing agreements.

This forced Brexit Secretary David Davis to write a letter to UK Prime Minister suggesting she consider legal action, as the EU created damaging plans focusing on no-deal planning. The EU responded by suggesting there can’t be any surprise of worst case scenario planning as Theresa May has threatened “no deal is better than a bad deal”.

The Brexit battle lines are really being reinforced after a quiet festive break. Before Christmas the EU and the UK came to an agreement over Citizens rights, the divorce payment and the Irish Border. Many at the time suggested the talks were going to get tougher and that looks to be the case at the moment.

Trade talks don’t appear to be making the headlines at the moment but no doubt over the next few weeks there will be snippets of information being released. Should there be a breakthrough or setback there could be major volatility on the currency markets.