Deflation has returned to the Eurozone as energy costs fell, increasing the likelihood of a programme of quantitative easing being introduced by the end of the month. Even the European retail sales figures being ahead of forecast were not enough to halt the euro’s freefall against the US dollar. The figures, coming in at 0.6% against a 0.3% prediction, were released yesterday morning, but a strong US dollar saw the euro drop below 1.18 for the first time in nine and a half years. Comments made by the European Central Bank (ECB) President also undermined the euro, with Mario Draghi stating that stimulus measures may include sovereign-bond purchases.
Today, we expect the industrial production figures from Germany and France, but do not expect this to have much of an impact on the euro’s performance.
Call your trader to find out how the euro is faring and what this means for you, now and in the months ahead.