The Euro hit its highest rate against the dollar for 18 months yesterday following good news on the EU Covid-19 rescue package.
Although there was some short-term volatility as markets reacted to the news, and lingering concerns about long-term impacts, it’s generally seen as being positive for the euro.
The effect on EUR/GBP was more muted, with a 0.5% strengthening.
It’s a quiet day on the data front but tomorrow we have consumer confidence from across the EU followed by Purchasing Managers Index (PMI) readings for Europe’s major economies on Friday – a reading of optimism as we head into the heights of summer. The expectation is that most will be above 50, which indicates a more positive attitude.
