A difficult week for the Eurozone but strangely a better than expected week for the euro. Data continues to, on the whole, disappoint and we also had the surprise decision by the Greek government to push forward a parliamentary vote for president to next week. This is a key vote because if there is a change then there could well be a stark choice between the Eurozone writing off a significant proportion of the debts it is owed by Greece of Greece leaves the Eurozone/European Union. Given the disruption that the Scottish Independence vote had on sterling we shouldn’t underestimate what could happen to the euro.
However, the euro only lost ground yesterday following the release of disappointing take up figures by the Eurozone banks of cheap loans from the European Central Bank. This has increased the likelihood of the ECB introducing a programme of quantitative easing in the first quarter of 2015. Looking to today, the euro zone is due to publish a report on industrial production which could create further issues for the euro.