020 7898 0500It was another impressive day for the euro on Tuesday as it reached its highest level since the start of February against sterling while it eased back from three-week highs against the US dollar. The slight weakness for the single currency followed data showing that German economic sentiment deteriorated to the lowest level in a year this month. Its performance against sterling, however, was down to poor UK inflation data, which fell to a negative level.
Very early this morning we had Consumer Price Index figures data from France. An indicator of inflation, this was forecast to remain just above 0 at 0.1%. Industrial production data is also out from the Eurozone, estimated to fall dramatically from 0.6% to -0.5%. This drop into negative territory could have a real impact on the single currency and stop it strengthening.
