Currency Note Euro

Draghi’s words continue to reverberate around the Eurozone

By Ricky Bean January 25th, 2016

The euro had a difficult end to last week, as it pushed down against both sterling and the US dollar on Friday thanks to expectations for additional stimulus measures by the European Central Bank weakening the demand for the single currency.

This was all a result of European Central Bank (ECB) President Mario Draghi’s words the previous day – that it would be necessary to “review and reconsider” the bank’s monetary policy stance at its next meeting in March. In the morning on Friday, flash purchasing managers index from the Eurozone was also released at lower than forecast figures: 53.5 compared to 54.2.

This week we have the release of consumer confidence data; the previous figure of -5.7 was a slight increase from the previous month, so the Eurozone will certainly be hoping that this ticks up slightly again. Other than this, we are not likely to see a huge amount of movement from the area this week, so investors will be looking at other markets for any major news.