The sale of German five-year bonds (selling at the expected negative yield) was the only notable Eurozone data release yesterday, in what was another quiet day for the bloc. The euro strengthened slightly against the dollar towards the end of the trading day, and finished around where it opened against the pound despite a slight rise in sterling in the middle of the day. The most significant release of the day was the US Federal Open Market Committee (FOMC)’s decision on interest rates.
Today sees a pick-up in activity for the Eurozone. Consumer confidence for the bloc will be released in the afternoon, but the main focus will be on European Central Banks President Draghi speech at 2pm. Any inclinations as to future monetary decisions from the European Central Bank (ECB) – whether that would be a change in interest rate or quantitative easing policy – could cause significant volatility.