The euro received much-needed support on Tuesday after the International Monetary Fund (IMF) raised its growth forecast for the Eurozone in 2015 to 1.5%, up from the previous forecasted figure of 1.2%. The IMF believes that the weaker euro and the fall in oil prices will bolster growth for the single currency region – this positive news has come at a good time for Europe. The euro rallied against the weakening dollar on Tuesday having rebounded from one-month lows after US retail sales data, although positive, fell short of market expectations.
Today could be an important day for the euro with the interest rate announcement at 12.45pm. No change in monetary policy is expected from the European Central Bank but the announcement from its President post the meeting will be very carefully scrutinized for any possible change in the future. There is already talk that given the improvements already being seen in the economy that its programme of quantitative easing could be tapered sooner than thought. German and French Consumer Price Index (CPI) data will also be released today.