Improving EA data unlikely to deter ECB from further easing

The EUR underperformed last week as a plethora of US data, including last Friday's employment report and recent Fed speak, increased market expectations for a December Fed rate hike. Furthermore, more policy accommodation by the ECB is expected before year-end, including an extension of time frame of asset purchases, a stronger forward guidance and a 10bp cut in the depo rate. The divergence in monetary policy should continue to add further downward pressure to the EUR. This week's data will likely keep the EUR weak. 


"We look for euro area GDP to moderate somewhat (Friday) to 0.3% q/q with risks skewed to the downside", notes Barclays.