The European Central Bank is happy with the performance of Euro. Trade-weighted Euro indicates that it is approaching the spring levels again. 

It is crucial that this trend continues. President Mario Draghi confirmed in October that he would react with determination when things on Euro front go wrong, like moving upwards, given the trade weighted euro was gradually moving in upward trajectory in April.

He stepped up expressing against the EUR very clearly. Adding to the declining oil price and high output gap, the euro was the reason why inflation developments disappointed, rising significantly to some extent.

"This means that a stabilisation or even a temporary recovery of the (trade weighted) euro will be acceptable to the ECB... As this is not currently the case it would seem that we can sit back and relax while we wait what further measures the ECB may announce next week. After all the euro is unlikely to be the main subject of the meeting this time round", says Commerzbank in a research note.