Currency Note Euro

Euro continues to weaken in the absence of influential data

By Smart Currency July 17th, 2014

The euro continued weakened yesterday in the absence of any influential data released from the Eurozone. Trade balance figures for the eighteen-nation bloc – showing the difference in value between imported and exported goods and services – came out worse than expected; however, the effect of these figures is muted by the fact that the equivalent data for individual states is released at an earlier date. As a result, the single currency continued to weaken against both sterling and the US dollar, although at a slower pace than the day before.

Today, the monthly Consumer Price Index (CPI) is set to be released, providing a key indication as to levels of inflation in the Eurozone. Inflation is a strong bearing on the direction of monetary policy and will play a role in determining whether or not European Central Bank (ECB) President Mario Draghi will undertake a quantitative easing programme or take further action to support the Eurozone’s economy.