Despite parts of Europe enjoying a bank holiday on Friday, the single currency managed to make moderate gains against sterling and the US dollar. There has been little data to improve the economic outlook for the Eurozone over the last few days, yet the euro has avoided further severe weakening against major currencies and has made considerable ground against sterling.
Influential events are weighted towards the end of the week this week, with Thursday and Friday likely to provide the most impetus for rate movements. Monthly manufacturing data is due from France and Germany on Thursday. Even the Eurozone powerhouses seem to be losing momentum of late, and key indicators such as manufacturing figures will help to determine whether output is indeed flat-lining or whether there is hope yet for the stalling recovery. We end the week with an address from European Central Bank (ECB) President Mario Draghi, in which he may shed some light on his take on the precarious state of economic affairs, as well as provide potential insights into future monetary policy decisions.