020 7898 0500The euro weakened against the US dollar yesterday but gained against the pound in a day largely guided by events elsewhere. The minutes from the European Central Bank’s September vote were published though, showing that policymakers expressed interest in pressing ahead with plans to wind down their quantitative easing programme next year.
The bank is expected to officially announce it will wind down QE at the beginning of next year and its next vote on 26 October. Interestingly, they also said that eurozone interest rates would remain at their currency record lows until the end of the central bank’s bond-buying.
Today we have factory orders from Germany, retail sales from Italy and balance of trade from France. Of these, perhaps only German factory orders could cause some movement in the euro, but should the fallout from May’s speech and the UK’s car sales continue, then sterling weakness could be the main driver of euro strength.
