Euro still under pressure against sterling

German Business Confidence data that came out on Friday spurred a slight euro recovery as the single currency made up some some of the ground lost earlier in the week. As well as making moderate gains against sterling and the US dollar, the seventeen-nation currency reached its strongest position in four years against the Japanese yen. The week ahead is set to be a quieter week for the euro in terms of data releases, but as we have seen this week, rumours and speculation can often have a much greater effect on performance. If we see any more light shed on the European Central Bank’s deliberations concerning the use of negative interest rates then further volatility is likely to ensue as such a move would have a strong negative impact on the strength of the euro. In terms of hard figures, Wednesday sees the release of German Consumer Climate data. This is followed by German unemployment and inflation figures on Thursday and equivalent data-sets for the Eurozone as a whole on Friday. Call your trader now to plan how to manage your exposure for the week ahead.