020 7898 0500As talks of a trade war intensified across the world, the third estimate of the eurozone’s GDP growth rate for the fourth quarter of 2018 slipped under the radar somewhat. Both the month-on-month and year-on-year figures came in as expected, at 0.6% and 2.7% respectively. Across the whole year, the eurozone’s economy grew by 2.3% which was slightly below earlier estimates of 2.5%, but much improved from 1.8% in 2016. The economic recovery continues.
The euro started the day by climbing higher against the US dollar and sterling – at one point it reached its strongest level against the pound since November 2017 and some market analysts suggested that because the euro is holding steady at the top of its five-month channel against the pound, a significant move stronger could be on the cards. However, sterling and the dollar managed to retrace their losses in what proved to be a volatile day for the single currency.
Today we have the European Central Bank’s interest rate decision which is expected to remain at 0%, but the press conference could be the bigger talking point. What will President Mario Draghi say? Will he allude to future monetary policy? Will he change tack and strike a hawkish tone? Or will he simply say that it is possible the current commitment to buy €30 billion of bonds every month until September 2018 will be extended?
