020 7898 0500Thursday was the end of a mixed week for the euro. It had performed fairly well – at least until yesterday when European Central Bank (ECB) president Mario Draghi spoke about a number of issues that the Eurozone is facing. The most important part of this statement from the ECB was confirmation that it would need to reassess its monetary policy stance in March, as inflation in the euro area remains weak. Draghi also said that while lower oil prices should help consumers and businesses, but the effect it would have on Eurozone growth remains the biggest risk. With regards to interest rates, Draghi said he expects these to remain at the present or lower levels for an extended period of time.
This morning, flash purchasing managers index (PMI) is out for the Eurozone and this is expected to tick up slightly from 54 to 54.2. Even this small increase is an initial positive step for the single currency.
