The euro has weakened against the pound following the Bank of England’s interest rate decision but is up around 1% against the dollar this morning due to disappointing US data.
Following on from the European Central Bank’s emergency meeting in which they said they would create a tool designed to limit the borrowing costs of its weakest economies, two ECB officials spoke. The first speaker, Francois Villeroy the Galhau, said that inflation is broadening beyond energy prices while the second speaker, ECB Vice-President Luis de Guindos, said that inflation expectations in the eurozone were “quite anchored”.
Later this morning we will see the latest inflation figures for the eurozone. The rate is expected to have risen from 7.4% to 8.1% in May.
