The euro had a mixed day yesterday as rate movements were largely dictated by ongoing speculation regarding European Central Bank (ECB) action at its next meeting in early June, alongside events elsewhere. The single currency fluctuated within a relatively narrow range against the US dollar, whilst it strengthened against sterling. Sterling reversed an upward trend yesterday following comments about the Bank of England Inflation Report by Governor Mark Carney.
Today is a busier day for Eurozone data releases. There are a number of figures due out that have the potential to affect the performance of the eighteen-nation currency. Eurozone Flash growth data is due out at 10am today, as is German Preliminary growth data, which is liable to have a more powerful effect on rates when it comes out at 7am. Trader activity this morning may also be influenced by the release of Eurozone Consumer Price Index (CPI) data – a key measure of inflation – and the monthly European Monthly Bulletin, which reveals the economic factors taken into account in May’s ECB rate decision.
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