We started yesterday with a buoyant and optimistic Eurozone as a raft of better than expected data was released. Economic activity in the Eurozone posted its highest reading in almost six years, with manufacturing PMI posting 55.5 and services registering 56.6. The two bullish figures were backed up by strong performances from the Eurozone powerhouse; Germany and France. However, politics continue to dominate the Euro region and investors continue to trade anxiously because of this.
Earlier this morning, the UK posted their second reading of GDP for Q4 last year. The figure registered a better than expected 0.7%, against a forecasted 0.6%. The Pound ticked slightly higher after this release, however gains were relatively capped as this is the revised second reading of growth in the UK.
The market’s focus will be on the minutes of the Federal Reserve’s most recent meeting. Given Yellen’s recent comments that it would be ‘unwise’ to wait too long, it will be interesting to see whether there is further fuel for a March rate hike, which would no doubt strengthen the Dollar further.