The euro is plagued by on-going concerns over the slowing of the Eurozone economy, with many single currency traders remaining jittery on disappointing data releases.
Mario Centeno, the chairman of Eurozone finance, commented ahead of yesterday’s Eurogroup meeting: “We know there is a temporary slowdown in our economies. We also know that most of the risks, as the Commission pointed out, are political risks, which call for us politicians to act.”
The economic calendar for the Eurozone is looking sparse today, but some euro traders will be looking ahead to the publication of Portugal’s publication of its inflation rate figures for January, which are expected to increase.
Meanwhile, Sterling steadied against the euro today as traders braced for Theresa May’s speech before Parliament.
Mrs May is expected to say: “[W]e now all need to hold our nerve [by] getting the changes we need to the backstop … and by enhancing the role of Parliament in the next phase of negotiations I believe we can reach a deal that this House can support.”
Today will also see the governor of the Bank of England, Mark Carney, deliver a speech, and with any hints of dovishness in his tone this could see the pound fall against the euro.
There has been some hope that the Brexit deadlock might be broken following last night’s discussions between Brexit Secretary Steve Barclay and Michel Barnier, the EU’S Brexit negotiator.
M Barnier confirmed that talks had been “constructive” but warned that they were not yet willing to renegotiate the deal.
There are no notable UK economic data releases today, with the GBP/EUR exchange rate continuing to remain sensitive to Brexit developments.