The euro is weak against the dollar this morning, after hitting a two-year low yesterday, and choppy against the pound. This comes as the dollar strengthened due to a ‘less dovish’ Fed announcement yesterday.
European GDP figures, released mid-morning yesterday, showed a slight decline both year on year and quarter on quarter. Although not a positive sign, it had been priced in by the markets.
Italian GDP growth has stagnated, hitting 0%, in a worrying sign for the country. However, it is actually better than the forecasted negative data, so it will be interesting to see next quarter how the trend bears out. Italy’s Deputy PM said that this was a sign that his plans of ‘cutting the tax wedge to boost growth’ were working.
Eurozone and German manufacturing PMI have just come in above expectations, but still below the 50 mark. Tomorrow, we will see Eurozone retail sales, which are expected to have increased month on month.
