The euro lost some ground against sterling yesterday, but remains back at the kind of levels we got used to in the early summer, some way off last month’s near-two-year highs.
For the past ten days the single currency has staged a small recovery against the US dollar, although whether a dead cat bounce after five months of losses, or a more sustained reversal of fortunes, remains to be seen.
Later today we’ll be seeing the ZEW Economic Sentiment Index for the eurozone and – more importantly – Germany, and on Thursday it will be Germany’s Balance of Trade.
Over the next two days we’ll also be hearing from various members of the European Central Bank’s interest rate setting committee, including ECB president Christine Lagarde.
