Euro opened the week extending recent down trend and reaches as low as 1.1905 so far against the greenback. EUR/USD is heading back to 2010 low of 1.1875. The common currency was pressured by outlook on ECB's policy as well as situation in Greece. There was free selling in Euro last Friday as ECB president Mario Draghi gave another signal that the central bank would adopt quantitative easing. And there are speculations that deteriorating inflation outlook could force ECB to nail down sovereign bond purchase as soon as during next meeting on January 22.
In Greece, prime minister Antonis Samaras warned of the risk of default and exit from Eurozone should main opposition party Syriza win the upcoming election on January 25. Regarding Syriza leader Alexis Tsipras' pledge to end Austerity, Samaras warned that could lead bankruptcy as “what they say can’t be done and would drive the country into a huge adventure.” According to a recent poll, Syriza is leading with 30.4% support against the governing New Democracy party's 27.3%, slightly narrower than prior polls.
On the data front, Swiss SVME PMI is expected to rise to 52.8 in December. Eurozone Sentix investor confidence is expected to improve to -1 in January. German CPI is expected to rise 0.1% mom, 0.3% yoy in December, slowed from prior 0.6% yoy. UK PMI construction is expected to drop to 59.0 in December.