Yesterday saw the release of 30-year German bond data, which came out with slightly higher returns than the last issue. We also saw Belgium report a dramatic fall in consumer confidence, as well as Portuguese current account information. The euro fell slightly against sterling and the dollar during trading hours.
Today sees a pick-up in data releases. German Producer Price Index (PPI) data, as well as Spanish and French bond sales are due, but most investors will be focused on the data coming from the bloc as a whole.
The interest rate decision by the European Central Bank (ECB) will be released, as will the key deposit facility rate. These will be followed by the ECB leaders’ summit and press conference. Although any change to interest rate levels is unlikely, hints at the future of the ECB’s monetary policy could cause significant volatility for the euro. Although no drastic changes are expected, changes to ECB’s quantitative easing policy have been mooted, and any further hawkish hints could lead to a stronger euro.