Our thoughts go out to all those affected by the attacks in Westminster and hope for a speedy recovery to all those involved. Following news reports of the attack the GBP/EUR rate fell to 1.15 losing half a cent in a very quick space of time. The rate has now recovered but in such an on-edge market it shows how much of an effect breaking events can have.
UK airlines under threat
Brussels has warned that UK airlines who have major EU routes will have to either move their headquarters after Brexit or consider selling shares to European nationals. Currently under existing laws companies have to be 60% owned by European investors however once Britain leaves the EU certain companies including Ryanair and Easyjet will no longer comply and be nearer 40%.
This could be an enormous logistical issue to move the headquarters and it would be more likely that they will sell stakes in the company. However, there could be a loss to British works as some jobs could be moved.
PMI data on Friday
Tomorrow will be a quiet day for European data, however on Friday across the Eurozone there will be multiple Purchasing Manager Index releases. This will provide an insight into the thoughts of business executives about their confident going forward. There is an existing optimism across businesses in the Eurozone and a high reading could help the Euro to potentially strengthen. Speculation is currently rife with regards to an interest rate hike from the European Central Bank this year. Good data will boost hopes that the Eurozone will move from negative interest rates this year.