Euro Set For Another Week of Disappointing Data

After last week's GDP data spelled disappointment for the eurozone, the common currency seems poised for another week of pressure as more economic indicators are set to be released in the coming days. The region's GDP data showed that France had joined the ranks of its southern peers and posted a contraction, while German data showed weak growth.The common currency began the week trading steadily at $1.28 on Monday morning as investors began to anticipate Thursday's release of preliminary estimates for purchasing managers' indices and a new German business confidence survey which is set to be released on Friday. Financial Times reported that although some are expecting to see a slight improvement in the region's PMI, the data will probably suggest a continually shrinking manufacturing and services sector. Another week of poor data could amplify calls for further stimulus measures from the European Central Bank, which has committed to doing whatever it takes to keep the region afloat. At the bank's last meeting, the region's finance ministers threw around the idea of lowering deposit rates, a move with many are now anticipating at June's meeting.With financial markets seemingly improving in the eurozone but sky high unemployment and impossible borrowing conditions in southern Europe, many are expecting to the region's recovery plan to shift its focus more toward growth rather than austerity. With Germany at the head of the recovery effort and Chancellor Angela Merkel openly supportive of a belt tightening policy, the divide between Germany and the rest of its struggling peers has been widening.