Much like on Monday, market movements surrounding the euro yesterday were largely attributed to events elsewhere, with no significant data released. A strong US dollar caused the euro to drop off against its American counterpart, and as such, after a subdued recovery over the past 2 weeks, the Eurozone currency was back trading near two-and-a-half-year lows. The euro finished the day fairly close to where it opened the day’s trading.
Today we have a raft of services industry data from across the European bloc, but unless we see a significant deviation from forecast in the results, expect markets to be relatively steady as traders look towards tomorrow’s Central Bank conference with anticipation. We don’t expect any bold positions to be taken ahead of President of the European Central Bank (ECB), Mario Draghi’s speech, which may outline any plans to move ahead with stimulus measures more categorically. As always, there is always room for surprises, which could potentially affect euro movement.