The single currency gained against both the US dollar and sterling on Friday; this was in spite of both Eurozone unemployment rate and Italian preliminary Consumer Price Index (CPI) data coming out worse than expected, and was mainly down to poor US data. Furthermore, with sterling investors closing out their positions ahead of the weekend, the euro was able to end the week on a high-note.
This morning we see Manufacturing Purchasing Managers’ Index (PMI) data from a host of key Eurozone states. Expectations are for Germany, Italy and Spain to keep expanding, while France is forecast to remain in contraction. Other key data to keep an eye out for will be the figure for Eurozone Retail Sales, which is to be released on Wednesday, and is forecast at -0.1%.