The common currency rallied to reclaim the $1.20 handle yesterday despite the European Central Bank making no changes to monetary policy. However, the central bank raised its growth forecasts as it said that GDP in the region is expected to grow 2.2%, up from 1.9% as previously forecast. The ECB president Mario Draghi also said that a decision to taper its monetary stimulus program would be taken at the October meeting.
Elsewhere, economic details included Japan’s final GDP which came in at 0.6%, slightly below the median estimates of 0.7% on the quarter. In the Eurozone, the final revised GDP confirmed that economic activity grew at a pace of 0.6% in the quarter ending June 2017.
Looking ahead, the UK’s industrial, construction and manufacturing production data is due to be released today. In the US, the wholesale inventories data is expected to show a 0.4% increase on a month over month basis.
