Due to a lack of major economic data releases on Monday the Euro is little moved against the Pound.
Economists are looking ahead to the publication of Wednesday’s Bank of England inflation report and Friday’s Eurozone GDP data.
What little data there was released painted a mixed picture in regards to the Eurozone’s economic recovery. A report showed that year-on-year Industrial production in Finland fell to -5.2% in December. France meanwhile posted an improvement of 0.7% yearly.
Italy however disappointed the markets after a report showed that industrial output in the country declined for the first time in four months in December. Output fell by 9% compared to the previous month, worse than economists had forecast.
The Euro did find some support from a surprise rise in investor confidence. The Sentix measure of confidence climbed to 13.3 in January, a 34 month high, beating economist expectations for a reading of 10.1.
The Pound was weaker against the majority of its peers as several economists expect the Bank of England to show that the UK economic recovery is cooling in its quarterly inflation report. The currency is likely to find support on Tuesday however as expectations are fairly high that an industrial report will show that retail sales increased in January. The British Retail Consortium is expected to say that sales rose by 0.8% last month compared to the 0.4% figure seen in December.
Key events for the week ahead:
Wednesday February 8th – Eurozone Industrial Production
ECB President Speech
Thursday February 9th – European Council Meeting
Friday February 10th – Euro GDP data
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3636 ,
Euro,, Pound Sterling,0.8319 ,
Euro,,Canadian Dollar,1.5047 ,
Euro,,Australian Dollar,1.5277 ,
[/table]
