The memo released yesterday morning that suggested the UK government had no Brexit plan turns out to not be truthful. The document was supposedly written by someone in Deloitte’s who has had no access to 10 Downing Street and was essentially speculating.
Essentially all the release proved was quite how volatile the markets are at the moment with anything Brexit related having an overpowering effect.
Merkel could accept free movement
Angela Merkel in a speech yesterday may have hinted that the EU-27 could have to compromise with the UK having access to the single market and full border control. However it was considered afterwards the in fact she didn’t really suggest that and it may have been confusion more than anything else.
It was reported yesterday that Angela Merkel could be looking to run for a fourth term however this was denied by her team. However in my experience this is likely to be an honest leak and I would not be surprised to see this released in the next few weeks. There is a huge amount of anti-EU sentiment with much of the blame lying at Angela Merkel’s feet with the decision to let in 1 million migrants. With the election just over 6 months away the decision to run is likely to be announced sooner rather than later.
Data for UK and EU
Tomorrow the UK is expected to release very positive Retail Sales figures that are expected to show month on month and year on year jumps, which could certainly help the GBP/EUR rate move towards 1.17. The Eurozone will also release Consumer Price Index data which is a key indicator of Inflation. There is in my opinion an air of scepticism forming around Euro’s strength especially with the Italian Referendum very close. If you’re a Euro seller I would consider moving sooner rather than later as 1.10 seems to be moving further away than getting closer.