020 7898 0500European data continued to show strength yesterday, highlighting the positivity throughout the Eurozone over the last few weeks. Eurozone and German Services Purchasing Managers Index (PMI) data – as well as the composite readings – came out above expectations, as did the Services PMI from Spain. The only blot on the record was the Italian Services PMI figure, which missed expectations slightly; however, all PMI figures released were easily above 50 – which shows growth. Italian and European consumer price data also beat expectations. The recent positive data seemed to have an effect on the euro (EUR), which strengthened slightly against the pound (GBP) and significantly against the dollar (USD) – moving further away from the much spoken about parity with the US currency.
Today sees data releases from Ireland, Italy and bond sales from France and Spain. European producer price levels will be released, but the most important data will come from the European Central Bank (ECB) in the form of the minutes from the latest monetary policy meeting. Any hints at changes in monetary policy from ECB President, Mr Draghi or his colleagues could lead to significant volatility for the single currency.
