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EUR: euro continues upward trend as data remains positive

By Ricky Bean May 24th, 2017

The single currency continued to be supported by economic data that once again posted positive readings.

The Independent Fiscal Office survey is a leading indicator of economic health as it surveys around 7,000 businesses. The IFO reported that business confidence and morale continue to grow as the survey reported its highest level since 1991. A big reason was the election result in France, where Emmanuel Macron emerged victorious.

Meanwhile, another reading reinforced the optimism seen from the IFO. The flash purchasing managers’ index for the manufacturing sector showed that the pace of expansion from the sector quickened when it was expected to pull back slightly.

Looking to the day ahead, much of the focus will be on ECB President Mario Draghi who is scheduled to speak at a conference on financial stability, organised by the Bank of Spain. As ever, the market will keep a close eye on the rhetoric he uses for clues on future monetary policy.