020 7898 0500Yesterday’s manufacturing data from the Eurozone disappointed slightly on release, but not to a large enough extent to have any strong bearing on the performance of the euro. French figures in particular suggested underperformance and showed contraction in the sector, whilst Eurozone figures as a whole came out marginally worse than expected. As such, the euro saw little net movement against sterling and the US dollar. It is unlikely that we will see any rally of note until key data sets, such as the Manufacturing and Services Purchasing Managers Index figures, reflect a more consistent recovery.
This morning we await German Business Climate data, which serves as an indicator of the level of optimism in the business community of Europe’s largest economy and can have considerable influence on the short-term performance of the euro. Expectations are not high given the problems in the Ukraine and Iraq.
