Data out on Monday morning revealed that both German imports and exports fell much more than forecast, revealing worrying cracks in the foundations of the Eurozone’s largest economy. Exports slipped by -1.3 per cent and imports slumped by -1.6 per cent, hitting sentiment in the single currency. Analysts say that German exporters are suffering due to current global trade disputes, Brexit woes and a slowing world economy. Commenting on the data, Carsten Brzeski, Chief Economist at ING Germany said: “The export sector had been on a rollercoaster ride through all of 2018, with problems in emerging markets, trade tensions between the US and China, US protectionism, a possible cooling of the Chinese economy and increasing fears of a hard Brexit.
“There simply seem to be too many crises in global trade for the German export sector to defy all of them at the same time.”
Meanwhile, with just five days until the UK is due to leave the European Union, Labour has said it expects to hold further cross-party talks with the Conservatives.
On Sunday, the Prime Minister tweeted a video message explaining her reasons for negotiating with the opposition.
In the video, Theresa May, sitting on a sofa and displaying a relaxed informal manner, said: “We absolutely must leave the European Union […] that means we need to get a deal over the line and that’s why we’ve been looking for new ways – a new approach – to find an agreement in Parliament.”
Today will see the House of Lords consider the Bill brought forward by Senior Labour MP, Yvette Cooper.
This Brexit withdrawal Bill aims to force the Prime Minister to request a Brexit extension rather than part ways with the EU without a deal.
If the House of Lords votes in favour of the Bill, it is likely the pound will rise as a result.
Brexit will remain the main catalyst for movement in Sterling over the course of this week’s session, with the pound likely to slip if a no-deal becomes more probable.
Looking ahead to Tuesday, it is likely that Sterling may slide against the euro following the release of the UK like-for-like retail sales figures.
If sales follow February’s lead, and contract in March, sentiment in the pound is likely to be dampened.