Tuesday was a tough day for the euro thanks to lower than expected preliminary inflation figures from the Eurozone. This has sent a worrying signal to investors, implying that the most recent increase in the Quantitative Easing programme (QE) has not had the initial desired effect. Inflation figures were released at 0.2%; a marginal increase on last month’s figure of 0.1%. As a result of this, the single currency struggled against its major peers, particularly the US dollar – reaching its lowest point against the American currency for over a month.
Today, the Purchasing Managers’ Index (PMI) is released at 9am; it is expected to slightly worsen from 54.2 to 54; other than this we should expect a quieter day for the euro.