The euro continued to strengthen. Economic data released yesterday was viewed as positive and the President of the European Central Bank made a speech which was well received. However, the key catalyst seems to have been the Federal Reserve meeting last week and the lack of clarity as to when US interest rates will rise which has undermined the US dollar and boosted the euro unexpectedly.
We have further important Eurozone economic data released today and this may well contrast favourably with the inflation data out the UK. So we shouldn’t be surprised if we see further euro strength today.