Euro is down against the pound this morning, after the latter strengthened on strong business optimism figures and a decreasing likelihood of a rate cut. The European Central Bank will likely leave interest rates unchanged at its meeting this afternoon, and Christine Lagarde is widely expected to launch a broad strategic review. The scope is not yet entirely clear, but many expect it to include a more environmental focus, and to examine changes to the central bank’s interest target.
Yesterday, Italian industrial sales came in better than expected, but yearly orders showed a bigger drop than had been forecast. Tomorrow will be another busy day for data, with PMI figures providing another snapshot into the Eurozone, French and German economies. Lagarde will also speak at 10:30.
