The Euro

The Euro hit two-month lows against the USD after bleak German manufacturing data

The International Monetary Fund Global Growth Expectations

The IMF cut its forecast for global growth to 3.2% for 2019 and to 3.5% for 2020. The fund named weakening inflation and softening economic activity along with trade tensions as the biggest barriers currently. The IMF noted that even though the global economy is not in a recession, the risks of entering one are increasing.

Also, the IMF increased US growth expectations to 2.6% for 2019 but kept a lower figure steady at 1.9% for 2020. On the other hand, Europe is expected to remain at 1.3% in 2019 and expected to increase to 1.6% in 2020.

Moreover, the fund referred to the tariffs the US is threatening to impose on Chinese goods.  The fund gives significant importance to the tariffs, Brexit uncertainty, European economic weakening, and geopolitical tensions from the Middle East.

Boris Johnson the new UK PM

Boris Johnson won the leadership of the Conservative Party on Tuesday which makes him the new PM. Johnson aims to negotiate a new Brexit deal with the EU to soften the process. However, if Europeans refuse to renegotiate, he has promised to leave on the agreed date of October the 31st 2019, whatever the case. Johnsons approach towards Brexit could create great volatility for the GBP.

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