020 7898 0500Last week ended on a positive note after a rollercoaster ride for the euro; despite little data being released, it strengthened against both sterling and the US dollar on Friday. Against sterling, the strengthening was over 1% – pushing the British currency to its weakest level in a month.
This week is likely to get off to a quiet start, with nothing of note expected on Monday; early on Tuesday, retail sales data from Germany will be released; this is forecast to fall sharply to 0.3% from 1.4%. The main release for the week will be on Wednesday, as we have both the Consumer Price Index (CPI) and unemployment data being released; unemployment is most likely to remain unchanged at 10.9%, while CPI is forecast to keep its head just above negative levels, but nonetheless is expected to fall from 0.2% to 0%.
