Election optimism in the UK is continuing to put pressure on the euro, which remains down against the pound. Inflation in the eurozone continued to shrink for the fifth month running, according to figures released this morning. Meanwhile, the Eurozone’s trade surplus rose, in another unexpectedly positive data released, reaching 187 billion, instead of the forecast 17.5 billion. Exports grew 5.2%, with imports growing at just 2.1%.
It’s been a positive week for the Eurozone, although we haven’t seen much upward movement against the pound. Today is relatively quiet, but tomorrow will see construction figures and, on Wednesday, we’ll see the ECB’s financial stability review. Friday will be a busy end to the week, with manufacturing, service and composite PMI for Germany and the Eurozone.