While this morning’s German Producer Price Index for January proved slightly better than forecast, although the annual reading was still an eight-month low.
The producer price index showed annual price growth of 2.6 percent, down from a year-on-year figure of 2.7percent for December.
Meanwhile, the pound is on tenterhooks with Prime Minister Theresa May in Brussels to discuss her Brexit deal.
When Mrs May meets with European Commission President Jean-Claude Juncker it is expected that she will request assurances that the Irish backstop will not extend indefinitely, although changes to the backstop have been consistently shut down by the EU.
Yesterday, speaking ahead of the meeting, Mr Juncker said: “I am meeting Mrs May tomorrow evening, and there is not enough movement for me to be able to assume that it will be a productive discussion.”
Any headlines relating to the discussion between May and Junker could spark GBP movement.
There will be a slew of data released from the Eurozone tomorrow, with both the Markit manufacturing and services PMIs for Germany and the Eurozone in focus.
The euro could benefit if the reports show an increase in output. However, declining output in the currency bloc would leave the common currency struggling. As it stands, economists have forecast a slight improvement in Eurozone services PMI but a decline in the manufacturing gauge.