020 7898 0500The euro strengthened slightly against sterling on Friday, but the only significant moment came from US non-farm payroll data, which weakened the euro slightly against the US dollar, before moving back to previous levels. German factory orders declined by 1.4% in July, compared to expectations for a 0.6% slip, which also contributed to the slight euro weakness.
The European Central Bank (ECB) indicated last week that it could expand its quantitative easing program amid increased risk to its inflation target. The central bank also lowered its forecast for growth and inflation, with the main reason being slow growth in China. As such, the euro is expected to remain under pressure this week, particularly with Eurozone growth figures on Tuesday expected to fall slightly, from 0.4% to 0.3%, and German growth figures expected to remain flat.
