Will we see a modest recovery of the euro?

The inflation data for March will be the key publication of the week. With the market discounting a 0.1% drop in the main figure, Ebury analysts believe that a 1% inflation would be enough to drive a modest rebound in the euro from its current position.

The economic news of the eurozone showed a better tone last week, after the bitter disappointment in the industrial activity of the previous week.

German retail sales were very strong and previous data were revised upwards. However, moderate ECB communications kept the euro close to the bottom of its recent range against the US dollar.