The euro had an excellent start to the week against sterling as it pushed back up to 13-month high. It did struggle against the US dollar in the morning as the flight to safer haven assets gained ground. The market movement was a surprise – particularly against sterling – as a report showing that Eurozone investor confidence deteriorated sharply this month, highlighting the problems in the global economy. The strength against sterling was ultimately down to uncertainty in the UK, rather than the Eurozone economy strengthening.
This morning industrial production data is released out of Germany. This is expected to improve back into a positive figure of 0.4% with last month’s figure down at -0.3%. Any surprises from the Eurozone’s economic powerhouse could have a significant impact on the euro. We are expecting a quieter week, so any small releases may be over-exaggerated with little else for investors to be monitoring.