Although the euro weakened slightly against the pound yesterday, investors are still feeling positive about its prospects, with confidence reaching a more-than-twelve-month high after three months of growth. That said, the figure is not astronomically high in itself, at 7.6, so it doesn’t mean that anything is ironclad.
Today, retail sales figures for the eurozone will be released, and it will be interesting to see the impact of the festive period. Figures are expected to re-enter positive territory, after a disappointing month previously.
The ECB seems set to continue current measures for the foreseeable future, with Philip Lane saying yesterday that, although ‘we remain satisfied that the basic mechanics of monetary policy still operate’, inflation measures are ‘still too low’.
