European stock markets and the single currency staged a rally following the string of PMI data released this morning. French, German and Eurozone figures published were well ahead of expectations signalling a pick up in business activity and hiring.
Pound to Euro exchange rates were down half a cent with similar movements noted against the US Dollar.
EU will not “punish” Britain says European Commission President
During an interview with the BBC, Jean-Claude Juncker reiterated that EU members will not look to punish the UK, but demanded that the exit bill is paid.
The bill, which is calculated at around €60bn, is for the UK’s commitments to projects made before the Brexit vote last June.
Juncker has not been shy to express his views towards Brexit, labelling it “a failure and a tragedy”, but insists the bill for the UK’s exit is not a punishment.
It will be a bill reflecting former commitments by the British government and by the British parliament. There will be no sanctions, no punishment, nothing of that kind.
– Jean-Claude Juncker
In a sign that EU officials are softening their approach to Britain’s decision, Juncker made clear that negotiations will take a “friendly and fair” path.
Expats living in Europe can take comfort in his promise to prioritise reciprocal rights, he said “This is not about bargaining. This is about respecting human dignity.”
All eyes on Article 50
Economic data next week will be light on the ground, both GBP and EUR investors will be focused primarily on Theresa May’s declaration of Article 50.
Pound to Euro exchange rates are likely to remain volatile but if signs continue to show a softening approach to negotiations, GBP/EUR may break through some of the resistance ranges of 1.16-17.