After taking some strength on Thursday in response to comments made by European Central Bank (ECB) President Mario Draghi, Friday saw the euro eradicate the majority of its gains. The faltering European economy once again undermined the single currency as services industry figures for the Eurozone came in below forecast, dropping to a 10-month low, with many areas showing quarterly industry contraction. Most worrying were France and Italy, the bloc’s second and third largest economies, which both showed a significant shrinkage.
Today and tomorrow we have German industrial data released which will be very carefully scrutinized in an attempt to gauge the true extent of economic problems in this all powerful state. Looking forward to this week we have industrial production figures for the Eurozone bloc on Friday, but eyes will also be on Mario Draghi’s speech on Thursday. Traders will be looking for clues as to Draghi’s future stimulus plans, with last week’s announcement being relatively vague.