13.05.2020 Eur/Gbp Daily Analysis

13.05.2020 Eur/Gbp Daily Analysis

Eu/Gbp is trading at 0.8833 it fell down with 0.0011 mainly because one of Germany's Constitutional Court judges told a newspaper that  European Union legal action against Germany over a ruling by the country's top court that targeted the European Central Bank  "would weaken or endanger" the bloc in the long-run.  Ursula von der Leyen, the EU executive's president, raised the possibility of a lawsuit on Sunday over the constitutional court ruling last week which gave the ECB three months to justify bond purchases under its flagship eurozone stimulus programme or lose the Bundesbank as a participant. Judge Peter Huber told the Frankfurter Allgemeine Zeitung that "an infringement procedure would cause a considerable escalation, which could plunge Germany and other member states into a constitutional conflict that is difficult to resolve." He is of the view that  "In the long term, this would weaken or endanger the European Union," and adding that an infringement procedure "is by no means inevitable."  This is therefore weakening the euro against the pound, however EU officials said on Monday the European Commission was unlikely to take immediate legal action against Germany over a ruling by the Constitutional Court in Karlsruhe. On the other hand  the Court of Justice of the European Union, which gave the green light in 2018 to the ECB bond-buying scheme, said on Friday it alone had the power to decide whether EU bodies are breaching the bloc's rules.