The euro continued its slow but steady slide against the pound that has seen it lose 5% of its strength since the start of the year.
Against the dollar the picture is a little better, as the euro has this morning reached its highest level for a week, albeit still 2 or 3% down on the month.
Yesterday’s cause for weakening EUR/GBP was the ending of most Covid restrictions in the UK.
The single currency found little support from its business sectors, because while Markit Services PMI for the eurozone as a whole and its main economies individually were positive overall, they were well behind the UK’s. There was a reading of 57.5 for Germany, 57.8 for France and 58.3 for the eurozone, all well behind the UK’s 62.4. Only Spain did better, on 62.5.
This morning, Germany’s construction PMI was 47, stronger than last month’s 44.5.
EUR may have more joy with ZEW economic sentiment data which will be released at 10am.
