The Euro has weakened on Tuesday morning, reflecting weaker sentiment in European markets following a combination of global factors and political battles.
The coronavirus is still continuing to take its toll on the global economy, however the Euro has managed to tread in steady footing since the outbreak.
PM Johnson will once again lock horns with the European Union to discuss further terms of the Brexit withdrawal bill and this could cause forex markets to shake across this week.
Yesterday, the French Foreign Minister warned Boris Johnson that Brexit negotiations could turn into a ‘battle’ with neither side wanting to make concessions.
The European currency did weaken toady, which was close to the three year low that it reached yesterday. A survey conducted in Germany reflected weak investor confidence – leaving a pessimistic tone for European markets.
The Euro has notably lost 3.4% of its value against the US Dollar so far this year in 2020, according to Reuters. Weak confidence in European markets has dampened the price of the Euro as the big titans such as Germany have seen reductions in their gross domestic product and manufacturing output.
The Euro Zone may be more vulnerable than once thought by analysts – and spooks to the Euro from Brexit negotiations are still expected across 2020.
The British Pound has still remained volatile – as forex traders remain cautious over investments with the coronavirus still at large and many disputes ongoing with EU negotiations.
The Euro against the Pound has slipped 0.3781%, and has seen a high today of 0.8348 and lows of 0.8298 – reinstating the fragility of the Euro.
Germany is one of the biggest drivers of the European economy – however output has declined over the last few months which has lead to a bruised Euro and there has not been much recovery in the Mediterranean economies of Portugal, Greece and Spain, who are all going through their respective troubles.
Some time must be given to the Euro to allow a bounce back following such a volatile period – however Brexit negotiations will continue to dominate British and European news headlines until all terms are completed.
