A dearth of Eurozone data yesterday meant that the movements in euro rates occurred largely as a result of events elsewhere. The release of the Monetary Policy Committee minutes meant the single currency fared better against sterling, and there was strength against the US Dollar thanks to speculation ahead of the Federal Open Market Committee (FOMC) interest rate decision. The day’s positive movements mark a departure from the more recent general trends, and as such were limited.
Today’s Eurogroup meetings, which will be attended by European Central Bank (ECB) President Mario Draghi and Finance Ministers from across the eighteen-nation bloc, may play a role in determining whether the euro can continue to strengthen against its major trading partners. Despite this, it is likely that market chatter and events outside of the Eurozone will continue to dominate proceedings.