The euro was undermined yesterday, dropping off against the majority of its peers again (bar a particularly weak sterling) after further worrying data releases. Following Monday’s manufacturing industry figures, yesterday’s inflation data showed that, if Germany and France are taken out of the equation, the Eurozone has slipped back into negative inflation levels. The euro’s only saving grace was a particularly weak sterling, which prevented a further euro sell-off that might have otherwise been the case.
Today we look to data from the services sector from countries across the euro bloc but, as alluded to in yesterday’s market update, traders will have one eye on Thursday’s interest rate decision and the press conference that follows. This week’s data releases have presented the European Central Bank (ECB) with food for thought – as such, we could be in for an interesting end to the week.