020 7898 0500The euro’s (EUR) quiet start to the week abated yesterday, with the well-respected Zentrum für Europäische Wirtschaftsforschung (ZEW), the German Centre for Economic Research based in Mannheim, releasing Current Economic Conditions and Economic Sentiment for Germany – the former coming out better than expected but the latter fell behind predictions – as well as Economic Sentiment for the whole bloc – which bettered expectations. There was also price data coming from Europe’s most powerful economy, which came out against expectations. The euro remained steady against the US dollar (USD), and showed slight strength against the pound (GBP) in yesterday’s trading session, in what was a calm day.
Today sees a quiet day on the continent, with only French price data and European industrial production figures coming out. The ongoing saga with Italian banks seems no closer to ending, and any movement – towards or away from any settlement – could cause movement in euro markets. Any move in the US Federal Reserve’s base interest rate could lead to movement in the euro/dollar market, with many banks having called for the EUR/USD exchange rate to fall to parity earlier in the year.
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