Euro remains tentative ahead of Thursdays rate decision

A quiet day for the euro yesterday. Markets are tentative ahead of the Central Bank’s rate decision on Thursday, and with no significant releases of data, the euro held ground against the majority of its peers. It lost ground against the US dollar, however, as markets speculate that the Federal Reserve will possibly announce plans to reduce stimulus later this week. Today should see a little more movement from the euro, with retail data coming out of German acting as a good inflation indicator, and quarterly GDP data coming out of Spain. However, expect markets to continue on a cautious note as we look towards Thursday’s rate decision.