Feb. 18: European session
It’s a very busy session. Data from the euro area was mixed. Current account surplus came bigger than expected, but German and euro zone’s ZEW economic sentiment were much lower than forecasted. Bears tried to return EUR/USD to $1.3700, but then the pair rose to $1.3734, the highest level since Jan. 24.
GBP/USD hit $1.6654 as inflation decline to the level below the Bank of England’s target for the first time since November 2009 (to 1.9% vs. target of 2.0%). Price of goods and raw materials purchased by manufacturers (PPI Input) fell by 0.9%.
British and European stocks are a bit on the downside. Euro Stoxx is down by 0.4%. Italian President Napolitano officially asked Renzi to form a government. Bundesbank said that emerging market turmoil is unlikely to have big impact on global recovery. The Eurogroup’s President Dijjselbloem tried to talk euro down saying that it’s too strong.