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On Monday the FTSE 100 hit a 14-year-high close and the S&P 500 hit an intraday high, as equity markets continued to move onwards and upwards without any overriding driving force behind them. On the other hand, currency markets appear to be stagnating as they wait for meaningful input of economic data to stimulate opinion.
Today’s quarterly GDP figures from Germany have come out in line with the markets expectations and, as such, have done nothing to strengthen the euro. Currency traders will no doubt be hoping that Friday’s release of the CPI flash estimates will have a greater effect.
This month, inflation around the EU is expected to be 0.7%, down from the previous month’s 0.9%, and continuing the downward trend the region has failed to reverse since late 2011.
For the time being it appears that EUR/USD may remain rangebound.