Further weakness for the euro?

The euro had a disappointing day across the board following mixed data from the Eurozone. Unemployment just beat expectations by falling from 10.4% to 10.3%, with the figure expected to remain flat for last month. Purchasing Managers’ Index (PMI) data did fall, however, from 52.3 down to 51.2. This, coupled with the poor inflation data on Monday, continued to hit the single currency after an impressive run against sterling over the last few weeks. Talk is still very much centred on next week’s European Central Bank meeting and what actions they will take to boost the Eurozone economy.

Today Producer Price Index (PPI) data is out from the Eurozone, but as this is not a major release we can expect a quieter day for the euro. With other markets active we are likely to see the euro fall or weaken on the back of this.