It was a big morning yesterday for the euro as the European Court of Justice (ECJ) ruled in favour of the quantitative easing stimulus proposed by the European Central Bank (ECB), which was previously being disputed by Germany. This means the ECB have been given the green light for any quantitative easing programme in an attempt to stimulate the Eurozone economy. In the morning we saw fresh six-year lows against sterling – the lowest point since October 2008 – and continued to remain at this level throughout the remainder of the day.
For today, the major piece of data is German growth data, forecast at 1.5%. This could potentially be a short-term gain for the euro but the respite is likely to be short lived as the currency will now remain under pressure for the rest of the month as next week we have the ECB meeting and then the Greek general election.