The euro had a fairly quiet day yesterday, with the only significant movement against the US dollar. The gains against the dollar came about mostly as a result of dollar weakness, although the single currency did take some strength from German service industry figures, which came in over forecast, at a figure of 54 –anything over 50 shows industry expansion. Against sterling, the euro gained throughout the morning following the German figures, but sterling then staged a recovery as the afternoon went on, closing at about the same level at which it opened.
Looking forward to today, we have German monthly economic health figures. With Ukraine on Germanys border these will be looked at very closely to see what impact this “conflict” is having and the embargos imposed on and by Russia given their involvement. Germany being such an influential nation in the European bloc, the figures should have some impact on the euro should they deviate significantly from forecasts.