The euro reached a landmark low on Friday as we saw it dip below €1.35 against the US dollar for the first time since February. As tensions in Ukraine escalated dramatically, the single currency breached the key technical level before recovering slightly.
This week, the key data releases are weighted towards the end of the week although we do have German inflation data being released today. French and German manufacturing data is set to be released on Thursday. French figures have been mixed over the last sixth months as have the German figures, although the German figures have at least shown consistent industry expansion. On Friday we expect the release of German Business Climate data. This is produced through a survey of a variety of businesses in the Eurozone’s largest economy and is a good indicator of economic health. Whilst these data sets have not had a strong impact on euro performance of late, their significance is likely to increase as investors try and gauge the effectiveness of European Central Bank (ECB) President Mario Draghi’s interest rate changes and liquidity pledges.