Yesterday was a positive day for the euro on the whole, with data in the morning fanning what is turning into a bit of a relief-rally for the single currency. German economic sentiment figures released at 10am came in well-above forecast, pushing the currency upwards against many of its peers as the day went on, hitting fresh one-month highs against sterling. The figures were encouraging, with any data from the Eurozone’s flagship economy holding significant sway in the market.
Sentiment is still heavily stacked against the euro which means it remains vulnerable to any negative data. Eyes will be on tomorrow’s Eurozone’s Purchasing Managers’ Index (PMI) figures for manufacturing and services and on Friday’s speech from Mario Draghi, the President of the European Central Bank, which will also be closely watched.