With a quiet day on the data releases front yesterday, the euro was mainly affected by events elsewhere. The single currency held relatively flat against the majority of its peers, but poor US data saw it gain almost half a percent against the dollar.
Eyes will be on the US again today, with the decision from the US Federal Reserve over tapering of Quantitative Easing (QE); any announcement that QE will continue should see a US dollar selloff, meaning a likely euro gain in response. Traders will also be looking towards tomorrow and Friday, with inflation and unemployment data from across the bloc being released. Uncertainty towards the outcome of the figures is high – recent releases have been very inconsistent, and as a result we could see some significant volatility in the markets.