There was little movement for the euro on Friday as markets remained quiet throughout the week. Poor inflation figures from Europe had little impact, coming out at -0.6% in January. Unemployment for the Eurozone improved slightly, falling to 11.4% in December but remaining high in comparison to that of the UK and the USA. Inflation data was largely ignored as there is purported to be an improved long term outlook due to the European Central Bank (ECB)’s recent decision to roll out quantitative easing, which is due to begin in March.
There is a raft of data to be released for the Eurozone this week. The January Purchasing Managers Indices will be released for Manufacturing and for Services on Monday and Wednesday respectively. The expectation is for them to hold steady when compared to the previous month. On Wednesday Decembers retail trade data will be released for the Eurozone. All of these data releases have the ability to move exchange rates but it is more likely that the on-going discussions about Greek debt will influence the euro as the tension and brinkmanship builds.