The single currency performed reasonably well yesterday ahead of tomorrow’s interest rate decision and following press conference. The euro appreciated against the US dollar for most of the day whilst we saw the sterling – euro rate briefly spike above 1.21 before the euro recovered. The buoyancy of the single currency came as a result of increased optimism ahead of tomorrow’s rate setting meeting. After the European Central Bank (ECB) unexpectedly reduced the refinancing rate from 0.5% to a record low of 0.25% last month the euro experienced considerable depreciation. However, following this month’s improved inflation data and taking into account the fact that we are fast approaching the Christmas break, few are expecting the ECB to take any radical action ahead of the New Year. Today sees the release of Spanish and Italian Services data, which may affect market movements. With manufacturing data from the Eurozone states – bar France – showing signs of slow improvement, traders will be keen to see if the Services sector is following suit. Additionally, monthly retails figures for the Eurozone are expected this morning. Call your trader now to monitor movements in euro pairings.