More worrying data from Germany yesterday weighed on the single currency yesterday, with industrial production figures being released in the morning. The figures have not historically carried much sway on the value of the euro, but coming in a significant 5.6% down on the previous month, and off the back of Monday’s poor German data, they were enough for the euro to have a wholly uninspiring morning session. Despite the euro recovering against its main peers, the British pound and the US dollar, the figures further underscored the risk of an economic slowdown.
It puts further pressure on the European Central Bank to widen economic stimulus measures. As such, all eyes will be on today’s speech by European Central Bank (ECB) President Mario Draghi and the hope that he begins to supply further details and thoughts on the ECB’s quantitative easing programme.