Euro awaits today’s decision on interest rates

The euro saw little net movement against sterling and the US dollar in another day of mixed data from the Eurozone. However, the single currency did depreciate sharply against the US dollar in the early afternoon, before making a swift recovery by the end of the day. Retail figures for the seventeen-nation bloc were down on expectations, revealing a decrease in consumer spending. Italian Services data was also disappointing as we saw contraction, whereas Spanish Services PMI provided the most positive news of the day for the Eurozone revealing more growth than was expected. Today sees the first European Central Bank (ECB) interest rate decision since last month’s unexpected rate reduction. Few expect further changes to be made at this stage, however traders may be influenced by ECB President Mario Draghi’s statement as they look for hints as to monetary policy direction as we look towards the New Year. Call your trader now to ensure you are taking advantage of any sudden market movements.