On Friday afternoon, the euro surged to a ten day high against the dollar following poor US manufacturing data.
The annual inflation rate for the euro area was released, coming in at 1.5% as expected. This was slightly above January’s nine month low of 1.4%. This inflation data helped to keep the euro steady, before it then strengthened against the dollar.
The euro weakened against the pound, as sterling rallied at the end of last week following a vote from MP’s to extend Article 50. With another explosive week for British politics ahead, however, the pound’s performance against the euro remains unpredictable at best.
This week there will be a series of important data released for the Eurozone, including the March PMI’s due out on Friday. They are expected to show signs of a modest uptick in growth conditions.
