The European Central Bank’s Villeroy, speaking yesterday, hinted that the Bank may yet inject more stimulus measures into the Eurozone economy, saying that low inflation gives them the opportunity to act ‘rapidly and powerfully’ and ‘go even further’. With the ECB’s monthly policy meeting coming up next week, it seems increasingly likely that further measures will be announced then.
The euro was given a small boost yesterday against the pound, after Ifo business climate figures came in slightly better than expected. This morning has seen German consumer confidence figures still in the negative, but slowly creeping back up to positive.
Later today, we will see the ECB’s financial stability review and a speech from Philip Lane. Friday will be a busy day, with French GDP figures, German retail sales and Eurozone inflation.