Despite some indicators coming in better than expected over the last week, the Eurozone economy is still not looking good. GDP and CPI are both underachieving compared to the ECB’s December Staff Projections – and we will likely see growth and inflation forecasts reduced in the March Staff Projections.
This week we will see PMI data released on Tuesday and the ECB interest rate decision on Thursday. It seems unlikely we’ll see a rate hike in June now, despite previous hints to the contrary.
The euro has remained relatively flat against the pound over the weekend, as the latter remained buoyed by the markets’ positivity on a potential extension of Article 50.
