After a quiet Tuesday, the Eurozone saw a pick-up in data releases yesterday. Manufacturing Purchasing Managers’ Index (PMI) figures led the way, with German figures coming out positive (but slightly worse than expected). European data as well as that from France and Spain showed an improvement on the expected results, but the Italian release was worse than expected. Despite a slight disappointment in the form of German manufacturing data, German unemployment data came out better than expected. The euro weakened slightly against the pound, recovering from a midday sterling rally, and strengthened significantly – by over half a cent – against the US dollar.
Today sees Spanish and Italian figures on unemployment, as well as data for the bloc as a whole. There are also bond sales in France and Spain as well as and European Central Bank (ECB) economic bulletin. These releases will most likely not be high impact, but if positive releases in the Eurozone combine with negative sentiment elsewhere, the euro could see more strength.