Tomorrow there will be Purchasing Managers Index data for several countries across the Eurozone and the nations itself. There has been a lot of confidence amongst EU nations of late that the business conditions are starting to improve. Currently there is an undercurrent of optimism that the European Central Bank could start to taper the Quantitative Easing measures and in turn increasing the interest rate from zero. This could all start with good business data tomorrow. Today there was a much better than expected preliminary consumer confidence release for March and this will help with the business climate going forwards.
GBP/EUR exchange rate improves
This morning the Pound to Euro rate moved above the 1.16 level for the first time in a few weeks. This was particularly surprising after the terrible incident in London yesterday. Terrorist attacks can often have a major effect on currency markets and the events yesterday did cause an initial drop in the rate.
Michael Barnier Challenges May
The chief Brexit negotiator for the EU challenged Theresa May over comments that she would be prepared to walk away from Brexit negotiations without a deal. Barnier suggested that there would be serious repercussions for the UK if that was to happen. Barnier is expected next week to tell the 27 leaders of the EU that the UK are mainly after a free trade deal.
Quiet Week Next Week
There’s a quiet week for Euro data next week, however Article 50 will be triggered on Wednesday. There is likely to be major volatility over the next week with so much uncertainty set to be created.