The main talking point from last week was the ECB’s decision to keep interest rates at their current record lows and maintain their fiscal stimulus programme. President Draghi said that a decision on quantitative easing will be made in October, as several eurozone business leaders called for an increase in borrowing costs.
On Friday, we learned that consistent euro strength has hit German exports and they only grew by 0.2% in June. Imports rose by 2.2% and was the smallest surplus for six months. German-made goods have become more expensive abroad as a result of the strong euro which might put pressure on Draghi to act sooner rather than later.
As for this week, there aren’t any key economic releases, but Wednesday sees the release of German inflation numbers and eurozone employment figures. We will also get the industrial production figures for Europe on the same day.