The euro had a difficult week losing nearly two cent against sterling and just under one cent against the US dollar. Following an address by Bank of England Governor (BoE) Mark Carney on Thursday night, sterling strengthened sharply and reached 19-month highs against the euro.
This week, Tuesday’s German Economic Sentiment data looks to be the most interesting data set due out. This will provide an insight into how analysts and investors in the Eurozone’s largest economy have reacted to European Central Bank (ECB) President Mario Draghi’s actions ten days ago. Figures are forecast to show slightly higher optimism than previously; however, a figure that is much higher or lower than expected could have strong bearing on how the euro fares in the early part of this week. There isn’t a huge amount occurring outside of this in the eighteen-nation bloc this week. Eurogroup meetings on Thursday and Eurozone Current Account data – showing the difference in value between imported and exported goods and services – on Friday could both also weigh in on euro performance.