Euro slides on ECB sentiment, Brexit looms large
The European Central Bank (ECB) surprised no-one by leaving interest rates unchanged, and inevitably the Euro (EURUSD) suffered as a result, perhaps because people were a little long and hoping (against all common sense) for some dynamism. The ECB did, however, slightly modify their forward guidance on Euro interest rates, indicating that they may have to alter their timetable and consider a change earlier than had previously been the case. This will simply add to nervousness about the economic health of the Eurozone, and with the prospect of the UK leaving (if the Government actually deliver what people voted for), the loss of the financial contribution will simply add a further burden to taxpayers in countries that are net contributors. The absurdly generous settlement seemingly agreed to by Prime Minister May looks set to be voted down again in Parliament, and a “No deal” exit should worry the EU far more than the UK . All in all, things are starting to look quite negative for the Euro, and unless an economic miracle can be conjured up quite quickly we do not see any positive news for the European common currency anytime soon.