Euro weakens as Brexit casts a shadow
The Euro (EURUSD) failed to maintain its attempts over 1.1800 and Euro bulls are now looking over their shoulders as the Euro retreats. It has now breached 1.1500 and there seems little reason to buy at these levels. Momentum is now with the sellers, and unless tomorrow’s Non-Farm Payroll figures are shockingly bad there seems to be little chance of respite to look forward to. The Annual Conference of the UK’s ruling Conservative Party is over and the Prime Minister has survived for now. There were some notable speeches critical of her supine approach to Brexit negotiations and there now seems little doubt that she will need to change direction fast if she is to avoid the fate that has been the lot of unpopular politicians since Julius Caesar ignored the warnings of the old man on his way to the Senate in 44BC. Time is running out for the EU negotiators to strike a deal on the terms (read cost) of the UK’s departure from the EU, and time does not work in the EU’s favour as attitudes in the UK start to harden against the consistently obstructive approach from the EU and start to favour a ‘no deal’ Brexit. This is merely a race to extract cash from the UK, and if the EU fails to obtain a cash payment as a parting gift then things will start to look very shaky for the German engine that drives the EU economy.