Despite the French enjoying the Bastille day bank holiday and worse-than-expected Industrial Production data coming from the Eurozone, the single currency performed remarkably well yesterday, making significant ground against sterling. Events elsewhere helped the euro to perform well in the morning, whilst
Mario Draghi’s speech in the evening revealed that he felt a strong euro could put the Eurozone’s economic recovery at risk; but, made clear that the ECB does not have an exchange rate policy.
Today’s main release in Europe will be the German Economic Sentiment figures. Current market estimates suggest we will see another fall in confidence for the Eurozone’s largest economy which would likely weigh on the euro. Outside of Europe, there is plenty to look out for on the global stage that could spur rate movements.