Euro had a quiet and relatively stable Tuesday. Negative German Producer Price Inflation (PPI) – the lowest since August 2009 – moved in the same direction as the Eurozone inflation, while slightly worse-than-expected trade balance figures for Italy looked set to weaken the euro further against its peers. However, positive German economic sentiment (a leading indicator for economic health) – the highest since August 2008 – benefitted the euro.
With no economic data out for the single currency today, investors will look at it for a day’s rest before the European Central Bank (ECB) interest rate decision and press conference on Thursday, where it is deemed highly likely that the ECB will outline their proposed asset purchasing program.
The Eurozone could be in for a volatile rest of the week, especially with the Greek elections on Sunday.