020 7898 0500After a busy beginning to the week, yesterday saw reduced activity in the Eurozone. German Produces Price Index (PPI) data came out better than expected, as did data on the bloc’s current account. Net Investment into the Eurozone came out as forecast. The economic figures released were overshadowed by the awful news of an attack on civilians in Germany. More issues with the injection of capital into Italy’s banks were uncovered, but the Italian government signalled their ability to step-in and bail the banks out – Unicredit and Monte Paschi di Siena being the most prominent – as a last resort. The euro (EUR) gained against the pound (GBP) and remained level against the US dollar (USD), but showed no signs of reversing any of its recent losses.
Today sees a further reduction in important data releases, with only lower-tier releases from Italy, Belgium, Portugal, Greece – as well as the bloc as a whole. These releases are unlikely to have a significant effect on euro markets, and any fallout from the unfortunate events in Germany, or the continuing Italian banking crisis – which the European Union has stated must be completed by the end of the year – are more likely to have a significant effects.
