The single currency had a mixed day yesterday, strengthening sharply in early trading against both GBP and USD but those gains being pulled back since.
Despite war brewing on the outer eastern edge of Europe, with the risk to power supplies if the conflict escalates, business expectations in the form of Markit PMI was high in Germany in January, hitting 60.5 for manufacturing – well ahead of forecasts – if more muted elsewhere in the eurozone.
Later today German optimism will be tested again with the Ifo Business Climate reading at 10am UK time, then GfK Consumer Confidence on Thursday.
