“With Salvini, an Italian ‘Brexit’ is not unworkable.” Mr Salvini hit back against his political opponents: “Under-the-table stitch-ups, country estate intrigues, technocrat or caretaker administrations will not stop Italians who hankering a strong government.” Italy is the Eurozone’s third-largest economy, so a deterioration in Italy-EU relatives will have a detrimental effect on market confidence in the single currency.
Productive woes also continue to haunt EU markets ahead of influential German inflation facts, with euro traders concerned that the Eurozone’s largest conciseness could face a recession in the near-term.
Meanwhile, the pound is starting to return to health today following Friday’s dismal UK growth figures.
These eclipsed the first contraction in the UK economy since 2012.
GBP/EUR moved away from its lowest levels in all but a decade despite the fact that no-deal Brexit fears are also on the ascent after Ireland’s Taoiseach Leo Varadkar said yesterday that an Irish backstop renegotiation intention not be on the agenda when he meets Boris Johnson in early September.
Varadkar’s spokesman commented: “[The talks] devise give both sides an opportunity to gain a better understanding of their special positions.”
“As has repeatedly been made clear, the withdrawal agreement and the backstop are not up for talk.”
With no UK economic data out today, pound traders will bring into focus instead on Brexit developments. They will also be looking to the fore to tomorrow’s influential UK jobs data.
If growth in UK average earnings inclines (as forecast) the GBP/EUR exchange rate’s recovery could continue.