Euro susceptible to events elsewhere

The euro suffered slightly against sterling, but strengthened against the US dollar following some mixed data coming from the Eurozone. German retail sales figures (both year-on-year and month-on-month) came out worse than expected, while Eurozone growth and Consumer Price Index (CPI) data came out as forecast. We also saw Italian Producer Price Index (PPI) figures released which showed a slight improvement.. As has been the case over the last few weeks, the relative calm of the Eurozone means that market movements are largely governed by events outside of the Eurozone.

Today sees a very quiet day in the Eurozone, with no significant data releases and public holidays in Italy and France. However, as we approach the finale of the US election, the constant spectre of the UK’s unpredictable handling of their Brexit plans, combined with the on-going issues with European banks, movements in the euro markets should not be ruled out.