Yesterday the Euro weakened by just over a cent against sterling as wholesale data from Germany was weaker than expected and the positive comments from the Bank of England Governor. The market continue to focus on the European Central Bank (ECB) meeting on January 22nd where officials could potentially introduce new quantitative easing policies as they try to resurrect the struggling single economy.
Early this morning we have inflation data for December for France and Italy being released which are forecast to improve from last month’s deflationary figure of -0.2%. Later on at 10am today Europe’s industrial production data is forecast to come out at 0%, down from last month’s figure of 0.1%. If we see this figure slip into the negative figure, this will send a strong message to the rest of the world on the state of the Eurozone’s economy; a bad sign before the snap election for Greece on January 25th.