The generally downbeat Euro-zone economic evidence will make it difficult for the Euro to make much headway in the short term.
Following the weak Euro-zone data on Friday when there was a sharp decline in the PMI services sector with Euro-zone data generally downbeat as German consumer confidence weakened in the latest month.
French housing starts also weakened to the lowest level on record since the series started in 2000 while French business confidence also continued to weaken in the latest survey.
The ECB will still want to focus on inflation in the short term, especially as inflation levels are likely to remain elevated in the short term. The Euro will gain some support from the ECB stance, but it will be increasingly difficult for the Euro to benefit if there is evidence of more substantial deterioration in the Euro-zone.
There will also be some renewed fears over the financial sector as the ECB’s emergency funding facility was tapped on Monday.