Friday was a quieter day for the euro and rate movements were limited before the weekend. No data of great importance was released and it would seem that there was no further reaction to Thursday’s Portuguese banking scare. This week promises more in terms of influential events. European Central Bank (ECB) President Mario Draghi is due to speak in Strasbourg today and perhaps spread a bit more light on future ECB monetary policy. As Draghi has explicitly stated that there is scope for more aggressive action should it be deemed necessary in order to meet the inflation target, traders will remain attentive and any hints given are likely to spur rate movements.
In a similar vein, we are expecting Consumer Price Index (CPI) data from the Eurozone on Thursday. These figures are one of the most important indicators of inflation in the eighteen-nation bloc and as time goes by will help to show whether or not Draghi’s loosening of monetary policy has had the desired effect.
Between the two data sets, German Economic Sentiment data is due out on Tuesday. Always an important figure, this can provide an outlook on future economic activity in the Eurozone’s largest economy. Results that deviate from predictions often have an immediate impact on the performance of the single currency.
If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news, and currency-purchasing strategies.