It was another solid day for the euro as it gained against sterling and the US dollar. This was in part because of decreased expectations of a UK interest rate rise which sent sterling sliding, but there was also some positive economic data for the eurozone. For, while the release of the Markit PMI figures showed that companies across the eurozone are growing at a slower rate than expected, they do still show that Europe’s recovery is strong.
This sets us up all nicely for the ECB meeting on Thursday, when President Mario Draghi and his colleagues will meet to decide on future monetary policy. While no interest rate hike is expected, the markets will be looking for any indication on the quantitative easing programme. It is currently scheduled to end in December 2017, although Draghi has hinted it could be extended beyond that. If it is, then the question is whether there will be a reduction to the current €60 million per month commitment.
The only major release of today is the German IPO business climate report. It is expected to increase slightly.