The euro stared the week in good stead, catching a much-needed break from the generally short position markets have taken over recent months. Tuesday was a positive day for the euro on the whole, with data in the morning fanning what was turning into a bit of a relief-rally for the single currency. German economic sentiment figures came in well above forecast, pushing the currency upwards against many of its peers as the day went on, helping it to hit fresh one-month highs against sterling.
With sentiment still heavily stacked against the euro, however, the currency remains vulnerable to any negative data releases. This was highlighted yesterday when we saw a raft of data from both the manufacturing and services industries come in below forecast, eradicating some of the gains made against the US dollar and the British pound. On the whole, though, it has been a positive week for the euro, at in relation to recent weeks. Eyes will be on European Central Bank President Mario Draghi this morning when he speaks at the European Banking Congress in Frankfurt.