 Euro rises broadly today, lifted by significant improvement in economic sentiment indicators from Germany and the broader Eurozone. Despite these positive signals, current situation assessment remains subdued. While the worst may be over for Germany's economy, in particular the manufacturing sector, recovery is still in its nascent stages and further nurturing is required. The uptick in Euro is more likely a corrective move rather than a definitive trend reversal, given the overall weak momentum of the common currency. Sterling is ranking as the second strongest performer for the day, next to Euro. The Pound largely overlooks the uptick in UK unemployment rate. Market focus remains on the persistently high wage inflation. Current conditions suggest it is still premature for BoE to consider interest rate cuts, as wage pressures do not yet show signs of significant easing... |
