020 7898 0500Yesterday was a quiet day in the Eurozone, with only a short-term Spanish bond sale of note, with yields actually pushing further into negative territory. This suggests that there will be little or no inflation in the near-term, which could be a problem for the Eurozone, with its low inflation levels.
The euro fell significantly against sterling, as news of UK price levels rising as well as the revelation that the UK would almost certainly have to vote on any terms that are agreed over the proposed exit from Europe caused a significant move in that pair. The euro fell slightly against the US dollar, as positive political sentiment pushed up the dollar.
Today sees a German 30- year bond auction. Although this is not a key piece of data, it could provide insight into investors’ interpretation of the long-term yield curve in Europe’s biggest market. This could provide clues as to whether or not murmurings of a European Central Bank (ECB) cut in quantitative easing has had an effect on investor behaviour. There is also data on the Portuguese current account and Belgian consumer confidence.
