020 7898 0500Last week we saw the euro weaken against major currencies. This was due in part to European Central Bank (ECB) President Mario Draghi’s statement earlier on in the week. He gave no hints regarding his monetary policy, especially regarding the scheduled end of the current quantitative easing programme, which is due to be completed in March.
Key data released this week saw the German Producer Price Index (PPI) come out worse than expected at -1.4%. We also saw Prime Minister Theresa May’s first European Summit meeting on Thursday evening. Brexit was discussed but this was overshadowed by the faltering Canadian Trade deal. This comes off the back of last month where the German Economic Minister and Vice Chancellor announced gridlock over the US-Eurozone trade deal.
This week, we see the German manufacturing Purchasing Manager’s Index (PMI), which is expected to remain the same as before, at 54.3. This is closely followed by the Eurozone PMI data, which will be effected by the German PMI outcome. Favourable outcomes within this data could potentially see the euro strengthen against currency peers like the US dollar and euro.
On Friday we’ll see German Consumer Price Index (CPI) data, which is expected to remain at 0.1%. A result that fails to meet the mark could cause weakness for the euro.
