The euro had a subdued week, dropping off against many of its peers amid growing speculation that the European Central Bank (ECB) will look to further advance stimulus measures. Rumours were circulating that bond and asset-backed security purchases could extend to as much as €3 trillion in an attempt to offer some much-needed liquidity to banks and other corporations. Reuters reported that we could even see the ECB buying up chunks of corporate debt in an attempt to inject some life into the region’s economy and boost stagnating inflation levels.
Yesterday saw the euro given a lifeline however, in the short term at least, as Purchasing Managers’ Index (PMI) figures showing the performance of the manufacturing and services industries across the region came in higher than forecast. The German figures were particularly influential, with a string of poor data out of the Eurozone’s flagship economy last month having weighed heavily on sentiment.
A quiet day on the data front today means that markets will be susceptible to external factors.