The week started with the spotlight on Europe. The common currency dipped to a 9-year low at $1.1889 following earlier comments by Draghi on stimulus action and disputed news from Germany about preparations for a Greek exit from the European Monetary Union. Pessimistic sentiment spread to Asia as markets closed the day mostly in negative territory, with the exception of mainland shares.
As the first full trading week of 2015 opens, traders will likely focus on the New York ISM and Total Vehicle Sales data.
The Euro fell to its lowest in 9 years against the USD due to speculation of ECB’s plans of expanding its fiscal stimulus programmes after Draghi’s statements on Friday. Investors await the next ECB policy statement for clarity regarding QE.
European stocks also suffered a drop, with Stoxx Europe 600 index falling by 0.3% to 340.25. This has been attributed mainly to fear that Greece might default on its debt and possibly leave the Eurozone.