020 7898 0500Yesterday saw the positive trend in European data releases continue, with European PMI figures from this week suggesting the quickest growth since 2011. Monday saw manufacturing PMI from Germany, France, Italy and the bloc in general, which all saw better than expected results – bar the French figure which was as expected. Yesterday saw the continent’s most powerful economy release positive employment figures, and we also saw German price data beat expected results. France too released price figures – also beating expectations. Despite all of this positivity, the euro (EUR) actually finished slightly lower against both the pound (GBP) and the US dollar (USD) – through it recovered most of its losses sustained during the trading day.
Today sees PMI data from the services sectors of Italy, Spain and the Eurozone as a whole. There will also be price data from Italy and the European Union which will be very carefully scrutinized. Headline inflation is expected to be close to the target of 2% as oil price and euro weakness against the US dollar take effect but core inflation is expected to well below target at less than 1%.
