- Euro front of mind for currency markets
- Brexit barriers continue to hamper the Pound…
- Flurry of data to come later this week
By Charlie Horsley
Euro front of mind for currency markets
The Euro is still in the driving seat in the forex markets. Political news coming from Germany over the weekend looked positive as Chancellor Angela Merkel secured support from her allies on a grand coalition. This will remain a major topic of attention for the week ahead. Chancellor Merkel met several leaders in her Christian Democratic Party in Berlin over the weekend and got some support for reforming the grand coalition with Germany’s Social Democratic Party (SPD). The single currency was spurred on by the positive news and is within touching distance of 1.2000 versus the US Dollar.
Brexit barriers continue to hamper the Pound…
In the Brexit negotiations between the UK and EU, the topic of the Irish border surfaced as a tough one over the weekend. The UK's International Trade Secretary, Liam Fox, warned that "we can't come to a final answer to the Irish question until we get an idea of the end state." That is, according to Fox, the decision on the Irish border won't be made before reaching a trade agreement with the EU. Until both sides come to an agreement on trade, this will continue to be a problem for the Pound.
Flurry of data to come later this week
The economic calendar will be very busy towards the end of the week. Inflation data will be the major focuses, as the Eurozone and the US will release Consumer Price Index (CPI) figures. Today we will also have the US New Home Sales figures to digest.