020 7898 0500The euro weakened slightly yesterday, ahead of the ECB meeting on Thursday. There will be a lot of focus on the meeting that is being held on the same day as the UK elections. There should be a flow of positive data from the Eurozone, though we did see inflation taper somewhat last week.
There’s been some speculation that the ECB could change the rhetoric following the interest rate decision on Thursday. This is seen as a move to signpost to the market their intent to slow the asset purchasing via quantitative easing.
If the messaging leans towards tightening monetary policy then we could see the euro strengthen on the back of that. On the other hand, if the message is slightly dovish the euro could lose momentum.
Ahead of this meeting, the Eurozone services PMI was revised slightly higher than the flash estimate, indicating that overall economic growth is likely to remain robust in the second quarter.
