The euro weakened yesterday after ECB President, Mario Draghi, said that he was open to boosting monetary stimulus if economic conditions in Europe continue to worsen. This in turn could mean that interest rate cuts and quantitative easing are needed. This morning, the single currency seems to be benefitting from the pound’s weakness.
Draghi’s comments provoked a response from Donald Trump via Twitter, who said that a weaker euro made it easier for Europe to “compete” against the USA.
Eurozone inflation fell to 1.2% in May from 1.7% in April, its lowest rate in more than a year. These figures supported Draghi’s suggestion that a fresh stimulus may be needed into the Eurozone economy.
