Yesterday saw a number of low-impact data releases. Italy’s business confidence rose, and Greek Producer Price Index (PPI) showed a slight improvement, although it still came in negative. Both the M3 money supply and private sector loan data from the EU came in worse than expected. Despite the mixed data coming from the bloc, the euro actually strengthened slightly against sterling, but did witness a slight fall against the dollar.
Today sees a run of data from the bloc with France, Germany, Belgium and Spain releasing price inflation data. Portugal will release its business and consumer confidence data, and a wide range of sentiment data from the Eurozone will also be seen. As has been the case for the last couple of days, we have seen a high quantity of low-impact data, meaning that single high-impact data releases in other markets are having more effect on the euro than Eurozone data. Any strong positive correlation seen in the data could lead to euro strength.