Euro stayed relatively range-bound yesterday from a lack of any significant data release, although it gained some strength against the US dollar caused by a general fall in the strength of the dollar. A European Central Bank (ECB) council member stated that if the Eurozone inflation outlook weakens they may look to consider negative interest rates. However, he did make clear that the ECB bases their decisions ‘on the most recent data and careful preparation’. He also noted that there has been ‘no signs of deflation in the euro area’ and that the Eurozone has remained resistant to the recent struggle of emerging markets.
Today we have industrial production data to dissect, and ECB President Draghi is due to speak in the afternoon. All eyes will be on this Friday’s preliminary growth data, which should set expectations for next month’s ECB meeting.
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