The Eurozone has been showing good growth of late and there is a plan from President Jean-Claude Juncker to bring the continent even closer together. Whilst the European Commission’s report didn’t reveal anything to exciting it has laid out high level plans for the route the EC will take in order to grow the economy.
Gross Domestic Product Data Tomorrow
At 10:00am this morning the latest GDP data was released for the Eurozone. Both the Quarter on Quarter data and the Year on Year were expected to stay the same as the previous reading, however the Year on Year figure did see a slight rise of 0.1% to 2.6%. The European economy has been improving over the last 6 months showing good signs of growth, so this was not a huge surprise, but is still a positive for the Eurozone, although it had little impact on the EUR/GBP exchange rate, which is focussed on Brexit news currently.
EU Leader Tusk Optimistic for Deal
European Union Chief Donald Tusk has said that he has been encouraged by progress in the divorce talks and that he was optimistic the two sides are getting closer to trade talks. The talks have now become more of a domestic concern with the UK Government negotiating with Ireland over how the border will be implemented. The European Council will be given the chance to vote on the Brexit divorce bill on the 14th and 15th December at the EU Summit. Should the 27 nations be in agreement then talks could move onto trade talks which could create even more market volatility.
At the end of last week the Euro lost ground against Sterling as the GBP/EUR rate lifted up following news a Brexit agreement might be close. If there was to be an announcement that a deal had been agreed then I would expect to see the GBP/EUR rate jump up towards the 1.15 level.