The euro bounced back against the US dollar on Friday despite worse-than-expected German Retail Sales data, whilst against sterling it remained relatively static. All in all, it was a fairly uneventful end to what was a fairly nondescript week for the single currency.
This week promises much more in terms of influential events and potential rate movements. The German Consumer Price Index – a key indicator of inflation – is due out on Monday, followed by the same type of data for the Eurozone as a whole on Tuesday. These figures may have a bearing on trader bets ahead of the all-important European Central Bank (ECB) meeting on Thursday. In this meeting ECB President Mario Draghi will announce the interest rate decision and is likely to dictate how he is going to combat the stubbornly low levels of inflation in the eighteen-nation bloc. After last month’s meeting, investors are expecting action to be taken on Thursday, so a failure to lower interest rates or implement a quantitative easing programme is likely to cause the single currency to strengthen sharply. Equally, such action, if undertaken, will likely cause the euro to slide further. The week is also punctuated by manufacturing and services figures from around Europe, which may have a bearing on short-term euro performance.
So as you can see a very hectic week for the Eurozone and by default for the euro. Which means that if you are looking to buy or sell euros, I suggest you contact your trader now for live rates, news and currency-purchasing strategies asap.