The performance of the single currency was once again mixed yesterday. The euro lost ground against the US dollar in response to some sub-par data releases from the Eurozone. German unemployment figures were worse than expected, detailing a rise in the number of unemployed people for the first time in six months, rather than the slight fall that was expected. Additionally, monthly French consumer spending data was down on predictions and showed a decrease rather than the expected increase. Both factors caused the euro to weaken against the US dollar, yet did not have enough influence over euro strength to cause a similar reaction in the sterling-euro rate. In fact, the single currency strengthened against sterling as Realised Sales data from the Confederation of British Industry dampened the sterling ascension.
Today is a bank holiday across much of Europe, hence the lack of notable data due out today and indeed for the rest of the week. German Retail Sales figures, set to be released on Friday morning, are the only ones worth remarking on. However, we expect continued rate movements as we move ever-closer to the next weeks European Central Bank (ECB) meeting.
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