The Euro had a poor start to 2015, moving to six-year lows against sterling on Friday. The fresh lows of Friday were due to continued uncertainty in the Eurozone. With the Greek election at the end of January, this could bring in an anti-Eurozone government, which will be forced to negotiate a new debt package as the country continues to deal with amount of debt on the shoulders of the Greek economy. The euro quickly recovered throughout the day, however, moving a cent back in the single currency’s favour. This gain was due to the European Central Bank’s well-received meeting regarding the quantitative easing program, aimed at kick-starting the Eurozone economy.
For this week, there is a raft of Eurozone data releases. Today see the release of inflation data for Germany and on Wednesday we have the release for the whole of the Eurozone. The data is expected to show significant falls from the previous month due to lower energy and food costs and the main hope is that inflations doesn’t turn negative (i.e. become deflation). We also have a raft of Purchasing Manage Indices and employment data for the Eurozone released which aren’t expected to make pretty reading.
Call your trader to get the latest update and see how the euro is faring in what could be a very tricky month for it given the uncertainty over the Greek election and the increased likelihood of a programme of quantitative easing in the Eurozone.