After a buoyant Thursday, Friday was a quieter day for the euro. Belgian Business Climate data was marginally more pessimistic than expected and European Central Bank (ECB) president Mario Draghi made an address in the evening, which affected the euro somewhat; however, any fluctuations paled into insignificance compared to the advances made on Thursday.
A greater volume of data is expected from the Eurozone in the week ahead and further volatility is likely. The first notable release of the week comes this morning in the form of German Business Climate data, which has been detailing consistent increases in sentiment over recent months. This is followed by Spanish flash growth figures and German unemployment figures, which are due out on Thursday. In terms of data representative of the eighteen-nation bloc as a whole we are expecting unemployment data and consumer price index figures – a key indicator of inflation – on Friday.
As last week has demonstrated, the single currency is likely to experience volatility should key releases differ from expectations. This means that businesses should watch the markets closely in the week ahead.
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