The single currency’s performance yesterday could best be described as “choppy” against USD and it ultimately ended up where it started. After an initial drop against sterling close to an 18-month low, it recovered mildly during the day and overnight.
Yesterday was inconsequential for data but we did hear more from two European Central Bank interest-rate setters and there will be three more today. We should therefore, have a clear steer on the thinking on interest rates and the levels of economic support felt to be required in the eurozone. That could be supportive of the euro.
Also supportive, in that it suggests higher inflation which may need to be tamed by interest rate rises, wholesale prices in Germany shot up by 0.8% in September against an expectation of 0.3%.
At 10am we’ll hear about economic sentiment from ZEW for Germany and the wider EU. Expectations are that it will fall again this month.
