020 7898 0500With the recent raft of disappointing data from the eurozone, all eyes were on Friday’s flash consumer confidence release. It was expected to fall to -0.2 in April from 04 the month before, but the figure actually came in better than expected at 0.4. It should provide some relief to those who feared economic projections were too optimistic.
However, the positive news didn’t stop the euro weakening against sterling and the dollar. It is felt that the overall picture of economic data from the eurozone makes it unlikely that the European Central Bank will increase interest rates anytime soon. While the ECB will no doubt push ahead with its normalising of monetary policy, rates could stay at their current level throughout 2018 and beyond. The bank is set to meet this Thursday to announce their interest rate decision and the subsequent press conference will be watched closely for any indication of future policy.
Today is a busy start to the week for the eurozone, as we will see manufacturing, composite and services purchasing managers indices data for Germany and the eurozone. More disappointment would increase expectations that rates will be kept on hold for a long time and we could see some further euro weakness. But then, it could all come in above expectations…we’ll just have to wait and see.
