With the week’s trading opening yesterday morning, growth concerns across the Eurozone continued to weigh on the single currency, which opened slightly down on last week’s subtle gains against the US dollar. Movement yesterday was understated, however, with minimal events of note in both the domestic and global markets. The euro was particularly flat against sterling.
We expect a similar pattern over the next 24 hours, with sterling-euro traders not likely to make many moves ahead of tomorrow morning’s Bank of England (BoE) interest rate release and asset-back purchases votes. European manufacturing industry Purchasing Managers’ Index figures (measuring the industry’s performance) on Thursday will also be watched closely.