020 7898 0500The euro remained relatively flat against sterling but struggled against the US dollar on Friday, pulling away from almost four-week highs as investors continued to ponder the Federal Reserve’s decision to hold interest rates for the time being.
Then this weekend we had the fifth Greek General Election in six years and the second one this year. There was no change with the Syriza party being re-elected and reforming the same coalition government. With debt renegotiations looming you hope that all participants have learnt the lessons of last time and sort out an agreement quickly. If not, I imagine we will see euro weakness.
This week, there has already been Producer Price Index (PPI) data from Germany, which was forecast to fall to a negative -0.2% from 0% last month. On Tuesday the Eurozone’s Purchasing Managers Index (PMI) is likely to be a key metric signalling the single currency’s performance. European Central Bank (ECB) President Mario Draghi will then be speaking on Wednesday. Consumer confidence data from Germany on Thursday is likely to be final major news from the markets, and will be closely scrutinized given the worries over China, which is also likely to fall slightly from last month’s figure.
