020 7898 0500Another day, another moderately disappointing display from the single currency. Yesterday saw euro rates continue the trend that they have been treading over the last month or so, with the eighteen-nation currency losing some ground against the US dollar and more ground against sterling. Sterling tidings, in particular, contrasted with those of the euro: the UK saw its unemployment level fall to the lowest we’ve seen since early 2009, while the Eurozone adapts to negative interest rates and its new monetary stimulus programme in order to combat deflationary pressures.
These trends are likely to continue until more influential data sets impact upon performance or stronger forward guidance is issued. Today the European Central Bank (ECB) Monthly Bulletin will provide some food for thought as it outlines the statistical analyses that were taken into account by the ECB at its most recent meeting. Such analyses may give rise to speculation and trading activity that could induce some movement in euro rates. Additionally, monthly Eurozone Industrial Production data is due out this morning, with the potential to have some impact. Whatever impact it might have is expected to be limited, however, as Industrial Production data for the larger economic powers of the eighteen-nation bloc were released at an earlier date.
