The Euro rallied yesterday after Chancellor Angela Merkel blamed a “too weak” euro for part of Germany’s trade surplus, stating that bolstering domestic consumption was the best way to address imbalances with countries such as France. “The euro is too weak - that’s because of ECB policy - and so German products are cheap in relative terms,”
Yesterday the European Union finalized its tough Brexit negotiating position, reiterating its hard line on the U.K.’s departure bill and refusing to discuss a future trading arrangement until there is agreement on other key topics. Michel Barnier, the EU’s chief Brexit negotiator told reporters “We want to move to a situation where all the commitments taken by the U.K. will be honoured, as will ours with the U.K.,”
The size of Britain’s exit bill, which some estimates put as high as 100 billion euros and is based on the U.K.’s past financial commitments to the EU, has been a source of debate for weeks and will prove an early test of the ability of both sides to find common ground when negotiations start.
Included in the EU’s negotiating mandate published on Monday is the demand that European citizens living in the U.K. at the time of Brexit should have the right to permanent residence after living there for five years .It also stipulates that the financial settlement should include all costs related to Brexit, including the relocation of EU agencies currently based in the U.K.
11:00- GBP: UK Inflation Report Hearings