The euro has confirmed its biggest quarterly gain since 2017 against the dollar, which was helped by the introduction of the EU’s coronavirus recovery fund back in July. However, it declined 2% against the dollar in September due to dollar strength.
President of the European Central Bank, Christine Lagarde, suggested yesterday that the ECB may follow the Federal Reserve’s lead when it comes to inflation. She hinted that the institution could abandon its current policy that targets inflation of “below but close to 2%” to allow prices to run above target.
Manufacturing PMI figures came in for Germany and the Euro Area this morning. The figure for Germany was 56.4 in September, jumping from 52.2 in August, showing that the sector is growing. For the Euro Area, the figure increased to 53.7, an improvement on August’s reading of 51.7.
