Eurozone economic data improving
Despite getting off to a quiet start in this week, the euro reached four month high against the sterling. No significant data was released, although consumer confidence across the euro zone was at a 15 month high along with data showing that unemployment rates across the region throughout June had fallen for the first time in two years. Markets were tentative in anticipation of yesterday’s Central Bank’s rate decision and statement that followed, the major affecting event of the week. As expected, interest rates were kept on hold, but the comments from the President of the European Central Bank that followed did cause some volatility in the market. Whilst suggesting that the worst was over for the Eurozone, the President did provide forward guidance on interest rates as he stated that rates were “to remain at present or lower levels for an extended period of time” and said that “expectations of rate hikes in money markets are, according to our assessment, unwarranted.” The other significant release yesterday was the manufacturing data which came in above market estimates but did little to effect the relative strength of the euro. Today, Spanish unemployment and Producer Price Index data will be the main points of interest for the Euro. Call your trader now for the latest on the euro.