020 7898 0500The key release from the eurozone yesterday was the year-on-year inflation rate. As expected, it dropped to 1.4% in December from 1.5% the month previous. Energy and unprocessed food grew at a softer rate which is one of the main reasons for the drop.
Meanwhile, construction output from across the eurozone was much better than forecast. It had been expected to drop from a revised figure of 2.2% to 1.8% but it actually came in at 2.7% for November.
The euro weakened against a stronger dollar and pound as members of the European Central Bank talked down the euro over fears that it will impact exports. As with the UK, today is a quiet affair but it will be interesting to see whether the euro can reverse its position against the pound.
