Following the ongoing positive sentiment surrounding the eurozone, we have seen the currency continue its charge against the US dollar and sterling. Economic data has had a sustained positive run. This, combined with comments from central bankers, suggests that tapering quantitative easing may start within a month or so, although there are no clear indications of timescales.
In the meantime, sterling remains weak amidst uncertainty surrounding the general election, while the US dollar is still reeling from the debate surrounding President Trump’s administration and leaking of confidential information to Russia.
Looking to the day ahead, we have European Central Bank President Mario Draghi speaking at the University of Tel Aviv. Markets will scrutinise his rhetoric as they are often used to his dropping subtle clues regarding future monetary policy.