The euro started yesterday in good stead, taking support from a raft of data released in the early session. Purchasing Managers’ Index (PMI) health figures from both the manufacturing and services industries were largely positive, and German ZEW economic sentiment data came in at an impressive 34.9 (anything above 0.0 represents a positive response). After a strong morning the euro saw much of its gains erased, however, particularly against the relatively strong sterling.
Looking forward to today we have monthly inflation figures from across the Eurozone. Inflation levels have been closely watched over recent months, with the European Central Bank (ECB) President Mario Draghi citing inflation levels to be the main driver behind any decision to push on with quantitative easing (QE).