Will the ECB cut interest rates further?

Unemployment and inflation figures for the seventeen member region on Friday were better than expected which reduced pressure on the European Central Bank (ECB) to further loosen monetary policy this week ultimately buoying the euro. On Friday, Standard and Poor’s (one of the big three credit rating agencies) simultaneously lowered Holland’s credit rating due to lowered growth forecasts whilst upgrading Spain’s outlook to stable despite data on Friday showing unemployment in Spain had reached fresh record highs of 26%. This week there is a lot of data being released that could impact the single currency. Eurozone Inflation figures released on Tuesday precede the GDP and Retail Sales figures on Wednesday. We also have Eurozone Purchasing Managers Index (PMI) figures from the services and manufacturing sector and all of these results could potentially influence the ECB’s decision over a potential rate change on Thursday although, at present no change is anticipated. Call your trader now for up to date euro prices from the market.