The single currency strengthened against the US dollar yesterday, close to its highest point since the start of the month and fractionally above early October. While it was muted against sterling yesterday, it remains close to its six-month high.
As for the UK, there was little data for the markets to chew on yesterday, but that changes today, with Germany’s balance of trade showing a fall to a surplus of €16.2bn (some way below expectations) and as we await ZEW Economic Sentiment for Germany and the eurozone. Last month’s below-market-expectations reading for the eurozone’s largest economy – beset by supply issues – depressed the markets.
We will also be hearing from several of the European Central Bank’s interest rate setters today, including ECB chief Christine Lagarde. Following disappointment for sterling from the UK’s own monetary policy committee meeting last week, will we see any divergence from earlier commentary?
On that note, Thursday will also see a final reading for German inflation for October.
