Despite a positive day yesterday the single currency remains slightly weaker against all major currencies apart from AUD compared to last week.
It’s a relatively quiet week for data, with the big event not happening until Friday – Eurozone inflation – but speeches from the ECB’s Isabel Schnable today and Christine Lagarde on Thursday will be closely read by traders. The key factor in currencies right now appears to be who will move first to raise interest rates. Ms Schnable has already said this week that: “In all likelihood, inflation will noticeably decrease as soon as next year… But should inflation sustainably reach our target of 2% unexpectedly soon, we will act equally quickly and resolutely.”
