The euro lost out yesterday as Purchasing Managers’ Index (PMI) data indicating the health of manufacturing industries was released for both Spain and Italy. The figures both came in below forecast, with the Italian data actually showing an industry contraction month-on-month, further highlighting the fragility of the European bloc economies. Economic news flow has increasingly diverged from what industry experts had forecast at the start of the year.
As such, speculation continues to build that the central bank could look to further stimulus measures. This could well take the form of an interest rate cut from the already record-lows of 0.15%, so eyes will be on Thursday’s interest rate decision and subsequent press conference form the European Central Bank We have further PMI data out of Spain and Italy today, this time for the services sector. Monthly European retail sales figures will also be of released.