The euro had a disappointing day and an even more disappointing week, having remained at the low levels of the week against the US dollar and sterling. On Thursday inflation data was released from Germany; this was better than expected at 0%, up from the forecast of -0.1%. But the main damage was done earlier on in the week, with the European Central Bank likely to loosen monetary policy further in December or in the first quarter of 2016.
It’s likely to be a busy day for the Eurozone economy today, with three key pieces of data due. Very early this morning retail sales data from Germany was released; this was forecast to improve from a negative -0.4% up to a positive 0.4%. Later on at 10am inflation data from the Eurozone is released; this is likely to increase slightly from -0.1% to 0%. Any figure above 0% takes the Eurozone back into inflationary levels, which would be a huge boost for the single currency.