A disappointing release may apply near-term downward pressure on the Euro, but lasting follow-through may be hard to come by. The ECB's narrow mandate puts issues of price stability at the forefront, meaning signs of deteriorating business sentiment are unlikely to have much impact if they don't necessarily translate into easing speculation. Drawing such conclusions would probably prove difficult considering the central bank's refusal to act despite the slide in headline CPI readings and priced-in inflation expectations over recent months.
With that in mind, a downside revision to January's final Eurozone CPI figure (if one is to materialize) is likely to produce a stronger response from the single currency than a dip in sentiment.
The Japanese Yen outperformed in otherwise quiet overnight trade as Asian stocks declined, boosting demand for the safe-haven currency. The MSCI Asia Pacific regional benchmark equity index slid 0.5 percent. Newswires attributed the negative mood to a report from
China January Property Prices
Credit Card Spending (MoM) (JAN)
Credit Card Spending (YoY) (JAN)
German IFO - Business Climate (FEB)
German IFO - Current Assessment (FEB)
German IFO - Expectations (FEB)
Euro-Zone CPI (MoM) (JAN)
Euro-Zone CPI (YoY) (JAN F)
Euro-Zone CPI - Core (YoY) (JAN F)