After some deliberately unsubtle verbal intervention from ECB Council members which held the euro down last week, the Single European Currency bounced back a little on Monday. EUR/USD rose from 1.2220 to a best level during the day of 1.2265 and has edged higher still overnight. There were no fresh economic numbers in the Eurozone yesterday, but there were a couple of sovereign credit ratings upgrades for investors to digest.
Fitch upgraded Spain’s credit rating to “A-” with a stable outlook late on Friday, citing a broad-based economic recovery and limited impact on the economy from Catalonia’s independence bid. It was Spain’s first “A” rating from one of the top three ratings agencies since the euro zone debt crisis. S&P Global Ratings, meantime, lifted Greek long-term foreign currency ratings for the first time in two years on improvements in government finances and the fiscal outlook.
Yesterday in Brussels, there was a meeting of the Eurogroup finance ministers which also extended an invitation to Mario Draghi and Benoit Coeure of the ECB. As European Commission President Jean-Claude Juncker pointedly tweeted, “Congratulations and best wishes @mariofcenteno for assuming the Presidency of the #Eurogroup. I look forward to fixing our roof while the sun is shining.”
Ahead of the ECB meeting on Thursday, we have the German ZEW survey today and then the preliminary Eurozone ‘flash’ PMI surveys on Wednesday and the ifo survey on Thursday morning.
The EUR opens in Europe this morning at USD1.2260 and GBP/EUR1.1405.