The euro strengthened against both the U.S dollar and sterling following positive euro zone third quarter growth data. The euro rose thanks to data confirming that both the German and French economies grew last quarter, with the French economy growing 0.3%, exceeding the 0.1% expectation. However, the general perception is that serious growth will escape the euro zone in the near future which risks reinforcing the euro’s more recent downturn against the dollar. The impact of the positive growth rates in the euro zone also helped the euro advance euro against sterling, consistently made gains throughout Friday.
Events for the euro this week start today, with a speech from ECB President Mario Draghi. As ever his words are sure to be closely scrutinised by investors, as they look for clues as to his plans specifically regarding quantitative easing. Tomorrow holds some data from Germany, as an independent source releases its economic sentiment figure. The manufacturing sector contributes on Thursday, with the Purchasing Managers Index due from France and Germany as well as the Eurozone as a whole. Friday then rounds off the week with a further speech from Draghi, with any further progress still liable to affect the euro’s performance.