020 7898 0500At the end of last week, negative euro sentiment was driven by poor German export data. Seasonal adjusted exports saw a 2.6% drop on the previous month, the largest negative shift since August 2015. This poor data, coupled with existing Eurozone growth concerns saw the euro weaken by nearly one cent against the US dollar. Against sterling the effects were minimal and the pair continued to trade within the same range) that the pair had held for the previous couple of days.
Today will see a dearth of data releases from the Eurozone. However on Tuesday we expect to hear from the European Central Bank president Mario Draghi, from whom any suggestion of increased quantitative easing or an interest rate cut could see the euro fall. Also on Tuesday we will see the release of German ZEW economic sentiment data (a reliable indicator of German economic health), which is expected to increased significantly from the previous month at 2.8. The week’s final significant data release will arrive on Thursday as European final Consumer Price Index (CPI) will be released which is expected to remain unchanged from last month at 0.2%.
