After a difficult previous week, the euro managed to stabilise on Monday and find some firmer footing off the back of better-than-expected German business climate data. This was built upon on Tuesday, with more German data, this time growth figures, providing further support and causing the single currency to gain against a weak US dollar. Wednesday and Thursday saw the single currency trade in a fairly narrow range, with data releases coming in much in line with forecasts, while a speech by European Central Bank President Mario Draghi yesterday did little to move the markets. Despite this, the euro made up some ground in the late session against a weaker sterling.
Inflation figures today from across the bloc will be closely watched by traders, with Draghi having cited waning inflation levels as being the primary driver behind any decision to ramp up quantitative easing.