020 7898 0500The euro took back some ground towards the end of last week, having previously traded towards the bottom of the year to date range versus the dollar. Against the pound however, the single-currency continues to trade within the 1.11-1.15 range we have observed since September of last year, with price action largely being driven by movements in the dollar price: EURGBP is very much a passenger.
Tier-1 data this week, we have German ZEW index (an economic sentiment) released Monday morning and key inflation releases on Wednesday. Markets will look to the inflation release in particular for clues to future ECB policy decisions, or at least the talking-up of any cuts to stimulus from bank President, Mario Draghi on the 26th of the month.
