It was a fairly quiet day on the data front for the euro yesterday. It seems there was plenty of support for the currency following comments from European Central Bank board member Sabine Lautenschläger, who hinted towards a more relaxed quantitative easing programme on achievement of their sustainable price stability goal. This is of course unlikely to happen before the French presidential elections on 23rd April and 7th May, as it is considered one of the main political risks of the year in Europe, given the popularity of National Front leader Marine Le Pen. Analysts at UBS have suggested a potential 10% fall in the value of the euro should the far-right candidate win.
Looking to the day ahead, data is looking fairly thin on the ground. Markets will be waiting for how sterling is reacting to the triggering of Article 50. While Brexit discussions are not expected to start until the end of May, or perhaps even the start of June, any Brexit updates are likely to impact the euro over the coming months.