“Steady as she goes” for the euro

Euro volatility picked up a little on the Friday of last week. Ground was made against sterling and some strengthening was seen against the US dollar in the morning, however these gains had been wiped out as the US dollar recovered in the afternoon. Looking ahead to this week, the first piece of big data coming from the Eurozone is German Economic Sentiment data, which is due out tomorrow. These figures, which are the result of a survey of key German investors, have been increasing for the last three months and could lend further support to the euro should the trend continue. Additionally, Eurozone Consumer Price Index data – a key indicator of consumer inflation – is released on Wednesday before as is the Eurozone current account data. The effect of the current account data will be limited to an extent as euro performance has recently been boosted by news of a trade surplus in the Eurozone’s largest economy, which was revealed last week. Expect increased volatility this week as a number of key events elsewhere are likely to weigh heavily on movements in euro crosses. Call your trader now to discuss your upcoming trades.