The euro is strong against the dollar and slightly weaker against the pound this morning. The single currency was given a boost yesterday due to a positive data release.
The German ZEW Economic Sentiment Index, which gauges investor sentiment, jumped to 84.4 in the May survey from 70.7 previously, the highest level since 2000. This shows that the German economic situation is improving.
There was also an improvement for the Eurozone’s Sentiment Index, which rose to 84 from the previous reading of 66.3. This has been boosted due to the easing of restrictions in countries such as France, Italy and Spain.
German inflation rate figures for April, which were released this morning, increased to 0.7% month-on-month and 2% year-on-year – the highest rate since 2019 due to the end to a temporary reduction of VAT.
