Wednesday was another disappointing day for the euro as it struggled against both sterling and the US dollar – possibly driven by the lack of news or data from the Eurozone and the eagerly-awaited US interest rate discussions. The currency’s weakness against the dollar was unexpected, especially due to the news that US pending home sales data unexpectedly fell in June, but the sudden strength of the dollar was clearly a response from investors ahead of last night’s Federal Reserve meeting.
This morning we have Consumer Price Index (CPI) and Gross Domestic Product (GDP) data from Spain – as well as German unemployment data, forecast to remain the same as last month’s figure of 6.4%. At 10am, employment data from the whole of the Eurozone will be released, and this is forecast to remain at 11.1%. CPI data from Germany is the final major data release due today, and is expected to show an improvement on last month’s -0.1% to 0.3%. This could be a big day for the euro – the biggest day in terms of data releases for the last couple of weeks.