Aside from yesterday’s brief drop against sterling – since almost recovered – the single currency has had a strong run, marginally beating most of its major rivals over the past week apart from AUD, CAD and USD.
This is largely based around last week’s high inflation figures raising the possibility that the ECB will (finally) raise interest rates.
There were no important data releases yesterday, but today we’ll hear Construction PMI across the eurozone and consumer confidence for Spain.
However, it is the interest rate decision on Thursday that really has the ability to move the markets and determine the direction of EUR in the near future.
