020 7898 0500Yesterday was another quiet day in the Eurozone, with only German Producer Price Index (PPI) data released, coming in below expectations at -0.1%. Despite the slight contraction in this inflation figure, the euro actually strengthened against the pound, but weakened slightly against the dollar. These market movements were however triggered by news in the US, with sentiment around the Federal Reserve’s interest rate decision today driving markets.
Today also sees little Eurozone data released, save for the issue of five-year German treasuries. The markets are likely to be focusing on both the Bank of Japan and the Federal Reserve for any changes in monetary policy concerning the yen and the dollar. Any surprises coming from either central bank will likely have a significant knock-on effect on the euro. Markets will then shift their focus to European Central Bank (ECB) President Draghi’s speech on Thursday.
