This was followed by the Eurozone’s Q4 GDP figures, which came in on target at 1.2 percent growth, although this represents a considerable slowing from 1.6 percent in Q3, according to figures published by Trading Economics.
Q4 Eurozone employment change figures bucked the trend, however, and increased above expectation to 0.3 percent – providing some uplift for the single currency.
Carsten Brzeski, a chief economist at ING Germany, commented: “The upside from today’s data is that it can hardly get worse. Economic fundamentals remain solid and from here on, chances of a [gradual] rebound are still much higher than chances of yet another disappointment.”
The pound, meanwhile, cannot have found much support from the latest UK RICS house price balance figures for January, which decreased by a disappointing -22 percent.
David Knights, a chartered surveyor at David Brown & Co, said of the figure: “There was the normal ‘bounce’ in the market expected in January with a good number of viewings and offers, but this did not last and coinciding with the reopening of the Brexit negotiations, we witnessed a slowing down in the last 10 days of the month.”
In Brexit news, Prime Minister Theresa May heads to the House of Commons today to face a debate on her strategy as well as a vote on a number of amendments which will determine the route of the withdrawal agreement.
However, hard-line Brexiteers such as Mark Francois, the vice-chairman of the European Research Group, have expressed reluctance to support Mrs May’s motion today due to its ruling out of a no-deal.
Mr Francois commented: “We cannot vote for this as it is currently configured because it rules out no-deal and removes our negotiating leverage in Brussels.”
The GBP/EUR exchange rate could rise if there is any indication that a no-deal could be removed from the table, and with some amendments pushing for a second-referendum, this too could provide some uplift for the pound.