There are fears that Britain will become ostracized and heavily disengaged from its fellow EU member due to David Cameron’s VETO of the EU treaty.
Cameron’s decision, which has been highly criticised, has created political disunity as Clegg and other coalition politicians failed to conceal disappointment at the decision. This disunity in the UK is likely to have a large impact on GBP trading today.
In Brussels, the EU crisis is a step closer to being resolved, as measures are being decided upon that will result in tighter fiscal discipline, tighter budgets and political reaffirmation from key players such as Italy and Spain.
Today another critical meeting will take place, which will focus on the IMF and how they will respond to the capital shortfalls in Europe and on going liquidity requirements.
Global markets have all been significantly impacted by the Eurozone, as data from China today revealed export growth at its weakest level since 2009 and ratings agencies did not consider the outcomes of last week substantial enough to keep AAA ratings on all member states in the EU. These are due to be revised in the first quarter of 2012.
- Germany’s Wholesale Price Index
- UK’s Consumer Price Index
Institutions named in this article:
IMF: The International Monetary Fund - An organization of 187 countries, aimed at fostering global monetary cooperation, secure financial stability, to promote international economic cooperation, international trade, employment, and exchange rate stability.