Euro weakened against the pound yesterday, as the latter was boosted by the Supreme Court’s decision. German business climate figures came in better than expected, showing a slight reverse of the previous six months’ decline. Today, the euro is looking stronger against sterling.
The ECB’s Vice-President de Guindos told members of the bank, again, that the ECB would not set policy based only on a narrow set of figures, and that positive unemployment and wage growth data should not be taken to imply higher inflation ‘around the corner’. He argued that ‘monetary policy decisions need to be based on a wide array of economic indicators, not just the unemployment rate and wages.’
Today will be largely affected by political factors, with few economic releases, although the ECB will release a statement from its non-monetary policy meeting late this evening.
