• The Euro saw slim to moderate gains on Friday ahead of ECB blackout.
• Europe got a reprieve from high-impact economic data this week.
• Next week sees euro area’s latest HCOB PMIs, as well the ECB’s next rate call.

The Euro (EUR) stepped broadly higher on Friday as market sentiment recovered its footing in the last day of trading for the week. 

Europe got a break from the economic calendar this past week with most markets focused on headlines from the World Economic Forum (WEF) in Davos, Switzerland. European Central Bank (ECB) policymakers have been running a media circuit in an effort to talk down market expectations of rate cuts from the ECB, and ECB President Christine Lagarde put significant effort into specifically not addressing monetary policy during a slew of scheduled appearances at the WEF.

Daily digest market movers: Euro catches a thin rebound on Friday

• ECB President Lagarde wrapped up the last of her three scheduled appearances at Davos without specifically addressing monetary policy. 
• ECB officials have hit the newswires in a steady stream this week, cautioning that market expectations of rate cuts have run well ahead of what the ECB is willing to execute.
• ECB President Lagarde warned that too-optimistic markets will hamper rather than help in the fight with inflation.
• ECB could cut by the summer, but only if new inflationary pressures don’t appear.
• [ECB’s Lagarde on Davos sidelines: Aggressive rate cut bets don't help ECB]
• A lack of economic data for the euro area this week gave Euro traders a reprieve from headline shock.
• The ECB has entered the “blackout” period ahead of next Thursday’s ECB policy meeting and rate call.
• Euro area Purchasing Managers’ Index figures due next Wednesday, markets forecast a slight uptick in HCOB Composite PMI for January from 47.6 to 48.1