020 7898 0500The euro has fallen to five-week lows against the US dollar and remains very close to twelve years against it following weaker-than-expected Eurozone Producer Prices. The expectation was a fall of 3.1% whereas the actual reduction was 3.4%.
The big event coming up is the European Central Bank (ECB) meeting announcement on Thursday, when the central bank is expected to give much more detail on how it is going to execute its €60 billion a month quantitative easing program. This should be a good sign for the Eurozone and a small signal that the single currency could be turning a corner in the short term.
Looking forward to today, we have Spanish and Italian services Purchasing Managers’ Indices (PMIs) in the morning, followed by retail sales data for the Eurozone – this is forecast to worsen from 0.3% to 0.1%.
