Euro weakness to continue
One might have thought that at least some of the uncertainty that continues to haunt the Euro might have been dissipated by the news that the UK Government and the EU at last agree on the terms of the UK’s departure from the European Union. That this hasn’t been the case is really reflective of the fact that although UK Prime Minister Theresa May professes to be happy with the deal, the only other party celebrating is the EU. This is because the draft agreement is widely (and correctly) seen as being so pernicious to the interests of the UK that one can hardly imagine such an economic surrender being signed by any nation not under hostile occupation. As such, it is unlikely to progress through Parliament and bring any relief to the common currency. Added to this is the increasing truculence of Italy, who are not minded to alter their budgetary proposals to suit the EU, preferring (in an act of Euro-Blasphemy), to put the interests of their own country first. Until these issues can be resolved the road ahead continues to look rocky for the Euro and we’d expect gentle, but consistent, downward pressure to dominate for the rest of the year at least.