The euro gained ground against the pound yesterday, although it is still lower than the beginning of this month. After a week of data missing expectations, German consumer confidence came in as forecast, although still low. The ECB released its monetary policy meeting notes, saying that it forecast ‘positive but modest GDP growth’ for the Eurozone.
The slow recovery of the European manufacturing sector, however, meant that ‘some caution was expressed about becoming too optimistic’, and there are still plenty of risks ahead, especially with weak Asian demand and the upcoming Brexit talks.
This morning, Markit PMI’s for the Eurozone have come in better than expected, although Manufacturing remains within contraction territory.
