The single currency enjoyed a broadly positive day, strengthening against all but the US dollar yesterday and extending its lead on the week to nearly 1.25% against the pound.
It continues to benefit, like the US dollar, from worries over a new phase to the pandemic, as vaccinated economies grapple with rising infection rates just as they attempt to restart their businesses.
Construction output data for the eurozone yesterday was far below of expectations for May, and the more important data releases this week include Business Confidence for Europe’s second biggest economy, France, on Thursday morning.
That will all feed into the European Central Bank’s interest rate decision on Thursday. On the inflation front, we’ve heard this morning that Germany’s producer prices rose 8.5% last year, the largest increase since 1982 and fractionally higher than expected.
