The euro has had a difficult time this week, falling to the lowest levels in three months against both the US dollar and sterling, as European Central Bank president Mario Draghi remained cautious about the Eurozone economic recovery, which had a real impact on the euro.
However, on Thursday the euro managed to erase some of those losses against sterling, largely down to the negative UK inflation report from the Bank of England which weakened sterling. Retail sales moved back into a negative figure at -0.1% – fairly far away from the forecast of 0.2%. This had little impact though, even against the US dollar, as it remained in the same trading range throughout the day. Early in the morning German manufacturing order figures were also poor: coming in at -1.7%, compared to the forecast figure of 1%.
German Industrial production data is released this morning, which is forecast to improve greatly from a negative -1.2% up to 0.5%. Apart from this, the only release of note is trade balance figures from France, and this is unlikely to have a real impact on the euro market.