The single currency has had a mixed week, strengthening by at least 0.5% against GBP, CHF, USD and JPY but slipping by more than that against the Nordic currencies and AUD, NZD and CAD.
Yesterday’s GfK Consumer Confidence Indicator in Germany slipped even further than expected to -1.2, with “willingness to pay” declining significantly in September. Other than that, data this week was a broadly positive, with German GDP at 9.4% year on year, business confidence remaining high and manufacturing and services PMI holding up for the eurozone.
With no public holiday in Europe on Monday, the week will start with a final reading on Eurozone consumer confidence and German inflation – definitely one to watch, with a forecast in excess of 4% (we have already this morning seen news of German import prices rising by 2.2% in July, far ahead of expectations).
