The euro has continued to struggle as the eighteen-nation bloc failed to provide any signs of improving economic sentiment. Losses were felt keenly against the US dollar as the euro-US dollar rate reached its lowest point in 11 months. Performance against sterling was more variable and we saw rate movements in both directions, which were largely driven by UK data. The main economic indicators of the week came in the form of manufacturing data from the Eurozone powerhouses; however, as releases came out largely as predicted, the effect of this data was limited.
The President of the European Central Bank (ECB), Mario Draghi, is due to speak on labour markets this evening over in the US. Investors will be paying close attention to this address in order to ascertain his views on the recent Italian dip back into recession, as well as on declining economic conditions in the eighteen-nation bloc. As such, we may see a significant movements in euro markets this evening.