Euro moved upward against the pound yesterday after a mixed bag of economic releases – although business confidence was worse than expected, services came in stronger, as did economic sentiment. The figures suggest households and retailers are both feeling more positive about the economy than in the previous month.
This morning, French GDP held steady at a small but positive 0.3%, while German year-on-year retail sales showed a slight increase.
The ECB has continued to urge large eurozone economies, like Germany, to make use of their financial leeway to promote sustainable growth with financial stimulus packages. However, Germany is unlikely to issue a stimulus package, as the Christian Democratic Party generally follows a policy of building up a substantial current account.
Today, Eurozone inflation figures will be released, expected to show a slight increase.
