Friday’s euro movements largely kept in line with the week as a whole, with changes determined by events elsewhere as opposed to actual influences from within the Eurozone. The euro weakened against the US dollar throughout the day, and saw little movement against sterling.
The week ahead is set to be a contrast, with some more important data set to be released from the eighteen-nation bloc. Manufacturing data from both France and Germany is expected to be released on Monday, and will give an indication of how the struggling sector has fared during the last month. This is likely to impact the performance of the single currency during the early part of the week. This manufacturing data will be followed on Tuesday by German Business Climate data, which should give an indication of the level of optimism within industry in the Eurozone’s largest economy. Finally, the week will be wrapped up on Friday with Consumer Price Index data. This is a key indicator of inflation and is likely to loom large in the minds of analysts and investors given the uncertainty regarding on-going policy of the European Central Bank (ECB).