Another quiet day for the euro (EUR) yesterday, with French Consumer Price Index (CPI) data out as forecast but European Industrial Production data falling short of predictions. The euro weakened slightly against the US dollar (USD) yesterday, due to the release of the French CPI data; however, it stabilised rather quickly, continuing to remain steady throughout the day. There’s no data scheduled regarding the Italian banks decision to move on any settlement, which will cause volatility within the euro markets once released. The US Federal Reserve’s base interest rate decision has led overnight to euro weakness when compared to the US dollar.
Today at 10am we have the release of the European flash manufacturing Purchasing Managers Index (PMI), which has shown steady growth in the last month along with the European flash services PMI, which has experienced similar form. The European Central Bank are set to release details of the long term refinancing operation, which should provide liquidity to the banks resulting in lower long term interest rates.