After the notable spike in euro rates that we saw on Thursday, the single currency traded within a narrower range on Friday. As European Central Bank (ECB) President Mario Draghi’s decisions on Thursday were largely priced into the market, they did not cause great euro weakness. Going forwards, however, the impact of the change in policy will have a strong bearing on the strength of the eighteen-nation currency.
Not a lot of data is in store for us this week, so reaction and speculation are likely to determine euro rate movements along with events elsewhere. On Tuesday French Industrial Production data is set to be released, followed by the same data set for the Eurozone at large on Thursday. Additionally, the ECB Central Bulletin is set to be released and may incite market chatter and rate movements as it reveals the statistical data taken into account when making the decisions from the most recent meeting.