It has been another fairly tough week for the euro – it started off strengthening against sterling but gains were erased as the week went on. We may see more movement as we move into next week, where we are likely to see the European Central Bank (ECB) loosen monetary policy further. Money supply data on Thursday came out much better than expected but this was only a short-term gain as again sentiment overrode any positive movements for the single currency as the day wore on.
With data out today from the Eurozone there is a chance to finally recover from a disappointing week. Business and consumer confidence data for the region is out at 10am but is projected to stay at -7.7. At midday Germany consumer confidence data is out and this is forecast to fall slightly from 9.4 down to 9.2. Any surprises for either set of data could result in movement in euro markets.