It was a disappointing day for the euro as it lost ground against sterling and the US dollar as a data-free day gave no support to the single currency. However, the losses were limited, given that the global economy still very wary over the slowing growth in China – this has helped boost the euro over the past week and a half.
We expect a busy day for the euro as French unemployment data is being released, with the previous month’s figure coming out a fairly high 10.3%. The Purchasing Managers’ Index (PMI) due from the Eurozone at 9am this morning is likely to increase slightly from July’s figure, up to 54.1 from 53.9. Finally, retail sales data is also due, forecast to improve greatly from a disappointing -0.6% to a positive 0.6%. Should this transpire, we may see an encouraging start for the euro.