The euro has started the week slightly up against the pound, despite a less positive finish to last week. German and French industrial production declined more than expected. This morning is light on data, as is tomorrow, although we will see some speeches from key ECB and Bundesbank figures.
Meanwhile, the ECB’s one-year strategic review is slowly getting underway, including looking at the possibility of adding house prices to its monthly headline inflation data. Some say that if housing was included, inflation could be 0.2-0.3 higher – closer to the ECB’s 2% target and, detractors of the Bank’s stimulus policy say, weakening the case for monetary easing.
