The euro strengthened against the dollar yesterday following inflation rate figures from Germany.
A preliminary estimate showed that Germany’s annual consumer price inflation is expected to rise by 2.4% in May, up from 2.0% in April. This would be the highest since September of 2008 and slightly above market expectations of 2.3%. Higher energy prices and the removal of the temporary VAT reduction at the start of the year have caused inflation to rise.
Inflation rate figures for the Eurozone will be released today, along with manufacturing PMI data. ECB President, Christine Lagarde, will speak on Friday following retail sales data and construction PMI.
