020 7898 0500The euro had a broadly positive day, making gains against the majority of its trading partners. Although the Italian 10-year bond auction was the only data out of the Eurozone worth any note (it sold higher than the prior auction around a month ago), the statement from the European Central Bank (ECB) president over the weekend contributed greatly to the euro’s strength. He said that “there is no immediate need to act” with regards to interest rates at the moment even though the “crisis isn’t over” however, he also mentioned that “there are many encouraging signs” which would not have been expected last year. These include slow but steady recovery in some of the Eurozone countries, reduction in budget deficits along with other improvements. Draghi also promised to ensure inflation would not be “stuck permanently below one percent and thereby slip into the danger zone” even though they are “not seeing any deflation at present”. We have a quiet day today with a bank holiday in Germany. Call your trader for the latest news and a live rate.
