020 7898 0500We saw an end to a bad week for the euro on Friday, as the currency reached month lows against its rivals. This was mainly due to the European Central Bank (ECB) President Mario Draghi speech confirming that inflation won’t return to the ECB’s goal anytime soon. Friday’s poor Eurozone Markit Services and Manufacturing Purchasing Managers’ Index (PMI) data added to the weakness of the euro as they all missed expected levels, with readings of 53.2 compared to previous of 53.3 and 51.5 compared to previous of 51.8. This was disappointing for the euro, and contributes to the unlikeliness of a possible rate hike.
On Friday, the release of more in-depth information on the ECB’s corporate bond buying scheme raised questions and concerns, especially combined with breakthroughs in the Greek debt talks that indicated an easing of said debt. This contributed to the euro having its worst day for nearly two weeks, and capping off its worst week in over a month.
Today we expect little movement within the euro due to the lack of data set to be released. Today we have the German IFO meeting with expectations for an improvement, across the board, in business climate, current conditions and expectations. Later in the week we have Eurozone inflation figures and preliminary estimates for first quarter growth. Both sets of data are expected to show a slight improvement when compared to the previous quarter but a slight fall year on year.
If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies.
