Putin’s acceleration of the war in Ukraine yesterday morning saw the euro fall against both currencies, as markets looked to currencies such as the dollar as a ‘safe-haven’.
The euro remains weaker against the dollar this morning (after shooting up briefly in the run up to the Fed’s interest decision), but has made gentle gains against the pound since last night.
At 3pm today, the eurozone will release the latest data on consumer confidence which is expected to dramatically decline following last month’s increase. Consumer confidence fell to a record low of -27 in July (in line with market expectations) before increasing to -24.9 in August. For September’s data, a -29 decrease is currently predicted, suggesting a return of a ‘pessimistic’ economic outlook among eurozone consumers.
The current eurozone energy crisis, ongoing war in Ukraine and boosted inflation are likely to be contributing factors in the expected lowered consumer confidence.
