The single currency strengthened against most currencies yesterday, apart from the US dollar, where February’s disappointing performance has continued.
After hitting a 10-month high in early February the trend has been largely downhill and that accelerated yesterday. This comes after increased expectations from the US side of the equation that the Federal Reserve will adhere to its hawkish monetary policy for longer following the latest PPI data which highlighted that price pressures remain elevated in the US.
In the eurozone, markets have just seen a final reading for French inflation coming in a 7% for the year to January.
Next week starts slowly for data but there will be the ZEW Economic Sentiment reading for Germany on Tuesday, along with a mass of PMI data from across the eurozone.
