The euro rose against the pound yesterday and was still strong against the dollar following positive GDP data.
Figures show that Euro Area economy shrank 0.3% on quarter in the first three months of 2021, compared with a preliminary estimate of 0.6% contraction. Year-on-year, the economy shrank 1.3%, less than the estimate of 1.8%. However, figures still show that Europe entered a double-dip recession due to lockdown restrictions.
Data yesterday also revealed that economic sentiment in Germany fell in June from a 21 year high in May but is still at positive levels.
Tomorrow, the ECB will announce their latest decision on interest rates and monetary policy. Investors will be listening out for any changes to the ECB’s Pandemic Emergency Purchase Programme.
