The euro looked shaky against the US dollar yesterday as it struggled to hold onto last week’s gains. Despite a surge in support briefly yesterday, it fell away against the pound and remains a good 5% down on last summer.
The talk remains on inflation and monetary policy, with ECB president Christine Lagarde warning yesterday that she will struggle – when policymakers meet on Thursday – to hold the line on the new 2% inflation target against calls for more rapid moves towards raising interest rates.
Meanwhile, wholesale prices in Germany were shown to be rising ahead of expectations yesterday, at 10.7% year to year, but worries over rampant inflation will have been tempered this morning by news that general inflation in Germany has held steady at 2.3% and in France June’s inflation rate was below expectations at 0.1%.
