The euro had a relatively quiet day Friday, fresh from hitting peaks against sterling on Thursday not seen since July 2012. In the morning we saw slightly weaker-than-expected German consumer spending figures, but these did not result in much movement against sterling. However, the euro struggled against the US dollar, hitting fresh twenty two month lows. Highlights from the European Central Bank (ECB) press conference on Thursday were weaker-than-expected economic conditions and the possibility of quantitative easing, which were the driving factors in the euro slump.
This Thursday we will find out if the ECB is serious about boosting the Eurozone economy through the use of quantitative easing as the spotlight will be on the ECB’s interest rate decision and the following conference. We expect President Mario Draghi to expand on the comments made during his conference last Thursday – interest rates are expected to remain unchanged. We also look forward to Inflation, unemployment and industry figures during the course of the week.