The euro fell lower yesterday afternoon after the European Central Bank vowed not to tighten its monetary policy until inflation reached the 2% target. The Bank has also said it will keep its bond-buying programmes until at least the end of March 2022.
This reluctance to adjust interest rates any time soon could weigh on the euro long term as central banks race to return to a pre-pandemic ‘normal’.
This morning, the euro has benefitted from better-than-expected German Markit PMI data.
Yesterday, consumer confidence figures for the eurozone missed market expectations as the Delta variant becomes more of a threat. The reintroduction of Covid restrictions in some countries has also dampened consumer sentiment.
