Among a raft of Purchasing Managers Index (PMI) data released yesterday, the German result actually fell behind expectation – although it indicated that growth was slowing rather than the sector shrinking. The figure for the Eurozone PMI came in above expectations. As well as the range of PMI figures, we also had a German bond sale, which showed yields increase but remain negative. This correlates with the inflationary data from Tuesday, showing a rise in price levels but no sustained pressure on them. The euro (EUR) responded to this mixed set of data by losing some of its recent gains, falling against both the dollar (USD) and the pound (GBP).
Today sees the highlight of the week within the Eurozone, when European Central Bank (ECB) chief Mario Draghi makes his latest speech. This will be accompanied by the ECB’s economic bulletin, and producer price information for the single currency bloc. There will also be a French bond sale.