020 7898 0500The euro had a mixed day on Friday, as official data earlier showed that French consumer spending rose 0.6% last month, significantly beating expectations for a 0.5% fall. December’s figure has also been revised up to a 1.6% increase. Yet the single currency lost ground again on Friday.
The Eurozone data flow is high this week. Just like the UK they will be releasing the Purchasing Managers Indices for all sectors and all countries during the course of the week. The European Central Bank (ECB) is also holding its monthly meeting. There is expected to be no change in the Eurozone interest rate but they will be issuing an updated economic forecast on growth. Expectations are for a positive upgrade – it should be noted that Germany and Spain recorded greater growth rates than the UK for the final quarter of 2014 – so we may see some support for the euro. It also has to remembered that the ECB have been keen for euro weakness to boost activity and exports and this does seem to be happening.
Despite some positive signs, the euro remains weak.
