The European Central Bank’s Governing Council gave euro a lift earlier yesterday, cautiously optimistic over the future. They said that there are some ‘initial signs’ that the economy is undergoing ‘stabilisation’, with the potential for industrial slump to begin to level out. However, as we have emphasised in our forecasts, they also reminded the media that the general global situation is still not ‘conducive to lowering uncertainty’, especially due to geopolitical volatility. Risks are still there, the Bank says, but just ‘somewhat less pronounced.’
The Council was largely in favour of keeping current stimulus measures going, saying it appears ‘fully appropriate’ and ‘lend[s] substantial support to growth and inflation development’.
Euro ended yesterday down against the pound, however, as the latter was boosted ahead of forecasted positive retail sales data. Today, we end the week also with a number of Euro data releases, including eurozone construction output and inflation figures, and French budget balance.
