020 7898 0500Euro volatility has been more limited this week despite two addresses from European Central Bank (ECB) President Mario Draghi and a reasonable number of data releases. The single currency has continued to appreciate against the US dollar, albeit at a slower pace, whilst strengthening moderately against sterling towards the end of the week. Data releases have been mixed this week with German Industrial Production figures for October showing a 1.2% decline when they were released on Monday; Italian manufacturing figures showing increased growth on Tuesday; and both the French Final Non-farm Payrolls and German Final Consumer Price Index figures coming out unchanged from the preliminary estimate on Wednesday. Yesterday, despite a statement released by European Central Bank (ECB) President Mario Draghi, the euro had a relatively uneventful day. Draghi focussed his speech on the concept of ‘stress tests’ that aim to test banks and increase stability of the banking systems within the Eurozone. He spoke less of future interest rate decision and liquidity measures, thus refraining from causing more notable fluctuations for the euro. Looking to today, expect much of the same from the Eurozone as the only data of note being released is Eurozone employment figures, which have limited influence due to earlier releases from major Eurozone economies. However, the euro may be affected by events elsewhere. Call your trader now to take stock of euro positions and take advantage of the week’s market movements.
