The euro reached a three-week high against the dollar yesterday, largely due to dollar weakness resulting from the Federal Reserve’s dovish tone and disappointing US GDP figures.
Germany saw two key data releases: unemployment and inflation figures. The number of people out of work fell by 91,000 in July suggesting that Europe’s major economy is recovering. Inflation rose by 3.1% which was more than expected. This increase moves further away from the European Central Bank’s target of 2%.
Later this morning, we will see GDP, inflation and unemployment rate figures for the eurozone.
