Up next is the eurozone flash inflation numbers for Feb
With the latest numbers from some of the member states showing a jump in CPI it's no surprise that the market is looking for between -0.4 to -0.5% y/y vs -0.6% prior
There's a chance we see a better number than that and anything up around -0.2% or even -0.1% will see the euro jump. How far it jumps is what we need to watch.
Any move back towards zero or positive will be welcomed by the ECB this week ahead of their monetary policy meeting but it's unlikely to change QE forecasts, and therefore the bearish sentiment in the euro.
If we get 2 or 3 months of gains in inflation then that might just get the market thinkin. With it heavily short, a run of positive HICP numbers might be something that sparks a squeeze
Again, the core number is going to be important and is expected in unchaged at 0.6%
