The euro is strong against the dollar this morning, which has mainly been driven by dollar movements.
Data released for Germany and the Eurozone yesterday suggests that the economic sentiment in Europe has improved. The ZEW Indicator of Economic Sentiment for Germany rose by 6.8 points from the previous month to 61.8 in January 2021, slightly beating market expectations. For the Eurozone it rose be 3.8 points. This reflects optimism for economic recovery amid vaccine rollouts.
Yesterday, the European Commission revealed a new strategy to strengthen and stimulate the EU’s financial system. Amongst other steps, this will involve promoting a stronger international role of the euro.
The European Central Bank will announce their latest decision on interest rates tomorrow.
