After Friday saw the euro have its biggest one-day fall in months, it managed to stabilise yesterday and find some firmer footing. On Friday, comments made by Mario Draghi, President of the European Central Bank (ECB), had pulled the rug from underneath the single currency, triggering a drop of over a per cent against its two main peers, but positive business confidence figures out of German yesterday, viewed as a forward looking indicator for the Eurozone’s largest economy, were enough to halt any further depreciation.
It looks set to be a relatively quiet day for the euro today, with very few fundamental data releases. Eyes will be looking towards inflation figures later this week, with European policy-makers citing waning inflation levels as being the primary driver behind decision to ramp-up monetary stimulus. Any surprise movements in other currencies still has the potential to impact euro performance.