The first week back for the euro was an impressive performance, with the single currency hitting 11-month highs against sterling, and working its way back into a better than position against the US dollar. Friday was no different as it continued to push the bar against sterling. The only momentary blip was caused by impressive non-farm payroll data from the US, which weakened the euro, but these losses were quickly erased as the single currency remained on the charge.
This week we are expecting a quieter time for the euro. The key day for data is Wednesday with Eurozone Industrial Production for November being released and the December consumer price index for France which is forecast to fall slightly. Given how well the euro has been supported recently we wouldn’t expect any major movements for single currency resulting from Eurozone economic data. However, unexpected political events or economic news from other economies still have the potential to affect euro markets.