After falling towards monthly lows against the dollar at the end of last week, the euro has strengthened against the dollar this morning.
Last week’s weakness was largely down to dollar strength that came from US Fed comments around tapering. However, as we start the new week, markets appear to have adopted a more ‘risk-friendly’ mood, something that favours the euro. This could be due to speculation that the Fed may actually delay its tapering as the Delta variant continues to spread across the US.
It’s a busy week for data in the eurozone. Look out for Markit PMI, consumer confidence and a European Central Bank meeting.
Any mention of changes to the ECB’s quantitative easing programme could give the euro fresh direction.
