Euro – up against sterling, down against the dollar

The lack of influences from within the Eurozone meant that movements in single currency rates occurred largely as a result of events elsewhere yesterday. The euro strengthened against sterling as a result of poor inflation data from the UK, while it weakened against the US dollar in response to stronger than expected Building Permits figures. The only data of any significance from the eighteen-nation bloc was current account data, which disappointed and illustrated a lower-than-expected flow of capital into the Eurozone.

Today’s line-up is not dissimilar from yesterday’s as once again we have high-impact events taking place in the UK and the USA – in the format of activity from the Monetary Policy Committee (MPC) and Federal Open Market Committee (FOMC) respectively – yet little of note from within the Eurozone.