EUR: Draghi says individual governments need to solve local financial imbalances

In a speech in Frankfurt, European Central Bank President Mario Draghi discussed local financial balances in the eurozone. He stated that monetary policy could not address these issues and the responsibility lay at the doors of local governments who, by using macroprudential policies, could play a key role.

Meanwhile, consumer confidence beat forecasts by increasing more than forecast in September. It rose from -1.5% in August to -1.2%, which was better than the unchanged figure expected.

Later today we will see the release of the German manufacturing purchasing managers’ index data for September. If we get a positive figure we can expect to see some strengthening in the euro, though this could be offset or emphasised depending on what May says in her key Brexit speech in Florence.