EUR: euro weakens against sterling and the dollar but could just be a blip

On what was an extremely quiet day for economic data from the eurozone, the single currency weakened against the US dollar and sterling. The new home sales from the US have no doubt buoyed it somewhat, although it is curious that this didn’t prevent sterling from touching an eight-week high at one point.

However, today is a busier affair and, if recent economic data is anything to go by, the euro could well find itself retracing the positions of yesterday. The consumer confidence report from Germany is released this morning and, as the eurozone’s largest economy, will give us some idea of how the wider economy is likely to perform in the run up to Christmas.

Tomorrow we have the business confidence from the eurozone as a whole and the German inflation numbers.