After a poor start to the week, the euro staged a recovery following Wednesdays statement from the President of the European Central Bank that it was too soon to make any changes to their programme of quantitative easing (QE). Speculation had been rife that such a statement would be made with the aim of weakening the euro following its recent bout of strengthening. The reverse has now happened and we are close to support levels against sterling, which, if breached could see the exchange rate push back towards €1.30/£1.
The weakness for the euro at the start of the week followed the re-election of the Syriza party in Greece and the release of economic data that fell short of expectations. There are limited Eurozone data releases today so we should expect the main driver of movement to be continued adjustments resulting from Wednesdays statement and news from elsewhere.