The rot for the euro started on Wednesday as speculation grew surrounding the likely level of quantitative easing that the European Central Bank (ECB) was expected to announce in their press conference the following day. As it was the speculation was not that far off the reality as the ECB stated that they will pump €60 billion monthly into the Eurozone economy from March this year until September 2016 – meaning that €1.2 trillion will be pumped into the Eurozone to try and stimulate its struggling economy. This weakened the euro further against losses suffered on Wednesday. Draghi also pointed out that inflation for the bloc will remain low for the short term, with this gradually increasing towards the back end of the year.
Out today we have the release of the German, French and Eurozone manufacturing and services Purchasing Managers’ Indices (PMIs) and we will see how the two ‘strongest’ Eurozone economies as well as the Eurozone itself are performing.
And then over the weekend we have the Greek election which is likely to increase the pressure on the euro even more. So the euro is far from out of the woods.