EUR: euro could benefit from Trump announcements and UK-US-related updates

On Friday the single currency gained slightly against the pound and moved sideways against the US dollar, which was mainly driven by worse-than-expected economic data out of the US. Trump’s policies are likely to increase euro-dollar volatility this week.

On the data front, Tuesday’s the Consumer Price Index figures are the highlight for the Eurozone. Markets are currently expecting no surprises.

This morning the Eurozone is due to announce sentiment and confidence data, followed by German inflation figures. On Tuesday Germany will announce its latest employment figures and the Eurozone will release Gross Domestic Product (GDP) data.

Eurozone retail sales for December will be out on Friday. However, euro movements may be driven by developments in the US and UK.