The euro continues to strengthen against the pound despite a deteriorating outlook for eurozone economic activity yesterday. Meanwhile, the euro strengthens against the dollar this morning following the Fed’s latest inflation announcement.
Germany’s ZEW economic sentiment data dissatisfied markets as the index fell to a much lower -61.9 compared to the anticipated -5.9. This was the third fall and lowest reading in over a decade. In addition, eurozone Industrial production MoM is also expected to fall this morning, after increasing 0.7% month-over-month in June. Markets are expecting much lower levels of production with a -0.3 decrease .
After speaking at the meeting of the college of commissioners yesterday, President of the European Commission Ursula von der Leyen delivered the 2022 State of the Union address this morning.
