Wednesday encouraged another step in the right direction for the euro as it gained against both sterling and the US dollar. This was largely due to negative data from the US and the UK, rather than from the euro; however IFO business climate data came out at 107.9, slightly better than the forecast figure of 107.3. IFO economist, Mr Brzeski, said “Strong growth in Quarter 4 of 2014, combined with low energy prices and the weak euro exchange rate have boosted confidence in the economy”. The European economy has also gained from lower oil prices, which in turn are giving German firms the much needed boost that the report mentioned.
Today we have a mixture of less significant data releases for the Eurozone and its member states so it is likely that news from elsewhere is likely to be more influential.