The ECB is likely to remain concerned regarding inflation in the Eurozone, while also being hopeful that the positive development will continue.

Contrary to the situation in the US, the economy in the Eurozone is weakening, which is likely to put pressure on EUR. If inflation then continues to move in the right direction, rate cut speculation for the Eurozone might be re-fuelled.

Once again market participants have to be patient though as there will be no significant new data from the Eurozone this week. Next week’s GDP data might provide more momentum again.