020 7898 0500The euro had a slow and disappointing start to the week as it gave back all of its early morning gains against sterling and the US dollar as the day progressed.
The driver of euro weakness was the increasing expectation that the European Central Bank (ECB) will cut interest rates deeper into negative territory in December. The euro weakened to a seven-month low against the dollar. There is also talk that the ECB will increase their programme of quantitative easing timewise.
This morning, French industrial production data is released. This is forecast to fall sharply from 1.6% down to 0.1%. Other than that we will have to wait until Wednesday for any major talking points for the single currency. However, events elsewhere may be able to influence the euro’s performance, so watch this space!
