Yesterday saw a small number of data releases from France and Germany, but nothing significant enough to affect the market. However, the euro did strengthen slightly against sterling gaining just under a cent. It weakened against the dollar, opening at around 1.126 and then closing at 1.1237. These however were only slight movements, and driven mainly by market sentiment in the UK and the US.
One reason for the lack of activity yesterday was that the markets were already focusing on today’s events. Today sees the release of the Minimum Bid Rate for the Eurozone (an interest rate on refinancing, which provides liquidity to the banking system). However the markets’ main focus will be the Press Conference that President of the ECB Mario Draghi will be giving at 1:30pm. Any suggesting of increased Quantitative Easing or a change in the ECB’s interest rate will have a significant effect on the Euro.