After a hectic schedule of economic data last week, the eurozone is taking a bit of a breather with no key releases this week. As a result, the euro hasn’t made any significant swings, although it has slipped a little against sterling as expectations of a UK interest rate happening sooner than previously thought increased.
That confidence was quelled slightly yesterday by the disappointing wage growth figures and it now seems extremely unlikely the BoE will do raise interest rates. We can reasonably expect some euro strengthening if Governor Carney takes a dovish stance but you can never be certain of these things.
As ever, we will just have to wait and see what the announcements are. It isn’t until next Tuesday that we will see any key releases from the eurozone, with the German ZEW Economic Sentiment release. Until then, events outside of Europe will be the likeliest influence on the single currency.