Yesterday the euro powered out of the dip it fell into in the latter part of last week, strengthening by 1% against USD and slightly less against the pound.
The reason was positive economic data, with GDP strengthening well ahead of expectation across Europe (4.6%) but especially in Portugal (5.8% annually) and Italy (6.4%).
Inflation hit new heights too, at 6% in Spain, 4.9% in Germany and 2.9% in France – all worse than expected for consumers and savers, but supportive of the single currency.
On the docket today will be German, Italian and eurozone unemployment rates, later this morning.
