It was an exceptionally quiet end to the week for the euro as it barely moved from where it opened on Friday against both sterling and the US dollar. The only piece of data released from the Eurozone was inflation data – this came out exactly as forecast at 0.2%, a modest improvement from last month’s figure.
This week the euro could continue to rally. Early on Tuesday Producer Price Index (PPI) data from Germany is likely to increase from -0.5% up to -0.1%. But most investors will be looking to Thursday, when the European Central Bank (ECB) will announce its most recent interest rate decision for this month. With ECB President Mario Draghi speaking as well, investors are hoping for a more in-depth view on how the president feels the Eurozone economy is performing and if another phase of quantitative easing will be necessary for the economy.