Yesterday began with Italian Trade Balance, and a Spanish bond sale data, but the biggest news of the day in the Eurozone revolved around the mixed survey results from the Zentrum für Europäische Wirtschaftsforschung (ZEW) Centre for European Economic Research in Mannheim. Germany’s current conditions were better than expected, but economic sentiment for both Germany and the Eurozone fell short of expectations – despite increasing from last month’s figures. This dip in confidence occurred despite the positive data the Eurozone has produced in the early part of the year. The euro (EUR) slumped in trading against the pound (GBP) but gained against the dollar (USD). However, these moves were due to political murmurings in the UK and the US – rather than events on the continent – as has been the case over the last couple of months.
Today’s data is predominantly consumer price related, coming from both the bloc and Germany – expected at 1.1 percent and 0.7 percent respectively. Any movement from the expected results could cause significant volatility for the euro.