The only release of note from the eurozone yesterday was the flash consumer confidence reading for January. While the indicator rose to -7.9 from a two-year low of -8.3 the previous month, this was still worse than market expectations of -6.5. However, this is only a preliminary estimate, so a revision in the future is not beyond the realms of possibility.
Today is an extremely busy day for the eurozone, with the Markit manufacturing and services purchasing managers’ indices from Germany and the eurozone. It will be interesting to see how both factors have performed in the first month of the year and we could see some euro movements if the readings are significantly different to expectations.
We will also see the European Central Bank’s latest interest rate decision. Rates will certainly be kept on hold this time around, so attention will be paid to the accompanying press conference. Any comments on the eurozone’s recent economic performance will be particularly interesting.
