Today the euro began at a four-week high against sterling, but weakened off as the day went on.
The main focus for this week will be on Germany, given that they narrowly avoided slipping back into recession last week. Today crucial ZEW business confidence data is released, previously at -3.6 but forecast to be positive this time at 0.5. Most of Europe will also look to Thursday as Purchasing Managers’ Index (PMI) data is released for November. The data will be likely to confirm a slow and narrow recovery, but economic conditions will be more stable than in the first part of this year.