Rhetoric around no-deal Brexit unlikely to sound any better over next few weeks - TD Securities

Previewing next week's macroeconomic events in Europe, "The rhetoric around a no-deal Brexit is unlikely to sound any better over the next few weeks," argue TD Securities analysts.

Key quotes

"The government will launch a public information campaign for no-deal preparations, to make no-deal look like a credible threat to the EU and PM Johnson will have his first in-person meetings with Macron and Merkel at the G7 summit on 24-26 Aug, coming no closer to resuming negotiations."

"With downside risks to the Eurozone continuing to materialise, the ECB will continue to debate and study how much further easing, and which type, is needed ahead of its Sept meeting. While markets are well-priced for a small depo rate cut, they're less certain about QE, and any signals that odds of QE are rising could put further downward pressure on the EUR."