Analysts at CIBC, point out economic data in the Eurozone is not as weak as it seems and could soon support the Euro.

Key Quotes:

“Low growth and low inflation have resulted in a dovish ECB and a downtrodden euro. However, growth and inflation may not be quite as low as people now think. The “supercore” measure of inflation (which omits other volatile prices such as air fares, not just food and energy) has been grinding higher.”

“A run higher in the surprise index suggests that the downgrades in growth expectations could soon be coming to an end. If these trends continue, the ECB may not have to be as forceful in any further stimulus measures, which would support the currency.”