Friday was a positive day for the single currency as it bounced back after a tough week and made reasonable gains against a number of major currencies including sterling and the US dollar. The euro was helped by better-than-expected French Industrial Production data, which came in showing growth of 1.3% in the sector.
Looking ahead to this week, the first big release is set to be German ZEW Economic Sentiment data, which is due out on Tuesday. This is an index produced as a result of a survey of key analysts and investors in Europe’s largest economy and is forecast to come out at the lowest level seen since 2012. On Wednesday and Thursday we have a host of growth and inflation data out for individual Eurozone countries and for the Eurozone itself. Expectations are not set at a high level. Any developments in Russia-EU relations during the week are liable to impact on euro rates, especially if further sanctions are imposed. Italy, France and a number of other Eurozone states will be enjoying a bank holiday on Friday.