020 7898 0500The euro had a relatively quiet day on Tuesday, moving down to 1.09 against the dollar after strong US new home sales data (a strong underlying factor for inflation) bolstered the outlook for higher US interest rate – which we expect to happen later this year. The main data release for the single currency was the preliminary composite Eurozone Purchasing Manager’s Index (PMI) for March, which came out at 54.1, its highest reading since May 2011. This was in line with expectations, a positive sign for the region’s economies but had no real impact on the markets.
Today we have IFO business survey data, and this is forecast to improve from last month’s figure of 111.3 up to 112.
