The minutes of the meeting from the ECB that was released yesterday showed that while officials of the governing council discussed tweaking the forward guidance, concerns about further gains in the exchange rate kept officials from making such changes. The euro initially gains on the release of the ECB minutes but soon gave back the gains.
The Japanese yen continued to strengthen on the back of the fresh terror attacks in Spain as investor’s risk appetite declined. In the UK, retail sales figures were slightly better than expected but remained low compared to the month before.
Looking ahead, the economic calendar today will focus on the Canadian inflation data. Economists are expecting to see a flat print for the month following a decline of 0.1% previously. In the US, the UoM consumer sentiment data is forecast to rise to 94.0 from 93.4.
