Friday saw the euro hold flat against the majority of its peers as traders acted with caution ahead of the release on Sunday of the stress tests on European banks. The expectations were that we would see Greek, Cypriot, Portuguese and Spanish banks come in with some worrying figures, but apprehension was offset by some positive data out of German the Eurozone’s flagship economy. In actuality the bank stress tests seem to have had less market impact than expected. Italy seemed to have the longest list of banks that needed additional funds and quite remarkably Spain had none. It has to be remembered that a lot of banks have been raising additional funds in the last year so overall it seems these stress tests have had the desired results.
Another interesting week on the data-front is expected, with German economic health sentiment figures being released this morning. There is also a raft of retail sales, employment, and growth figures due from across the bloc later this week, with Friday seeing the release of October inflation figures for the entire Eurozone.