The euro made slight gains against sterling yesterday as hopes of an imminent interest rate hike in the UK were dampened by a unanimous vote against by the Monetary Policy Committee. As we saw little data of note from the Eurozone itself, there was little rate movement seen against the US dollar and euro performance against other currencies was largely determined by events elsewhere.
After what has been a quiet week on the data front, today offers some potentially influential releases. Flash Manufacturing data is expected from France and Germany, amongst other Eurozone states. The French data is expected to show moderate contraction in the sector, while the German figures are expected to show moderate growth. Significant divergences from these forecasts are likely to have an instant impact upon the strength of the single currency. Additionally, unemployment data is due from Spain – this is expected to show that just above a quarter of the Southern European nation’s workforce remains unemployed. Services data from a number of key Eurozone economies also have the potential to cause movements in rates.