LONDON (Thomson Financial) - The euro was trading within a range against other currencies and is not expected to move much Monday as a bank holiday in the U.S. and UK as well as a lack of economic data in the euro zone muted trading volumes and left investors to look forward to the coming week’s events.

Consumer price data for Germany on Tuesday, and for the wider euro zone on Friday, will shape interest rate expectations, with Friday’s number expected to hit 3.6 percent, up from 3.3 percent in April but matching March’s level, a historical record.

With European economic sentiment mostly stable — as apparent in the Ifo indicator last week, which rose despite pessimism in financial services — the data ’should underpin the euro bulls’ idea that the European Central Bank won’t cut rates in the foreseeable future but could hike at the end of the year,’ said Gavin Friend at Commerzbank.

Read Further By Clicking Here

Bookmark with:

More from Business