Euro: How Strong is the Economic Recovery?

[Electron]

The euro was exceptionally volatile last week,but this wasn’t unusual given the pace that the rest of the currency market was running at. What was unusual though was the sharp sell off through Friday.Does weak inflation really have that much influence over price action Or perhaps there are larger fundamental concerns putting pressure on the market.

Though there is smattering of event risk in the week ahead,the world’s second most liquid currency will likely find its pace through the same forces that have driven the US dollar, Japanese yen risk appetite and outlook for growth.