The Euro continues to come under pressure, especially against the greenback, after Thursday’s announcement by the head of the European Central Bank that additional monetary easing would likely occur at the December policy meeting. Markets are also focused on the news out of the Eurozone relative to the resurgence in Coronavirus infections and deaths. Both Germany and France, the two largest EU economies, have instituted national lock down orders, while Spain, the fourth largest economy, has regional restrictions in place. Christine Lagarde said that the ECB was monitoring the Covid-19 situation very closely as the impact on the economies as a result of the restrictions would likely mandate the need for a rapid and more expansive response.
In the Asian trading session, as of 9:21 am in Tokyo, the EUR/USD was flat at $1.1678; the pair has ranged from a low of $1.16678 to a peak of $1.16795. The EUR/GBP was lower at 0.9029 Pence, down 0.0343% and moving away from the session high of 0.90420 Pence. The EUR/JPY was lower at 122.032 Yen, a loss of 0.0786%.
Eurozone GDP and CPI in Focus
Later today, market players will look to fundamental data out of the Eurozone, specifically for the German economy. Germany’s retail sales figures for September is likely to show a rise to 6.6% (on an annualized basis), up from the previous 3.7%, according to the latest poll. Later, Eurostat will be releasing information on the Eurozone economy. Preliminary GDP for the 3rd quarter is due out; analysts are forecasting an improvement in GDP to -7% on an annualized basis, and 9.4% on a quarterly basis (from -14.7% and -11.8%, respectively). Preliminary core inflation data for October for the Eurozone is also due out; analysts are forecasting it will be unchanged at 0.2%.