Yesterday the euro weakened against both sterling and the dollar following the latest inflation data and the eurozone gas crisis. Today the euro strengthened against the pound but is still at a low overall. Against the dollar, the euro has weakened.
This morning the euro continues to lose strength against both currencies amidst the fears of higher inflation hikes from the European Central Bank. In the latest data, eurozone inflation rose to a record high of 9.1%. Despite recent hikes, the ECB is predicted to raise interest rates again, this time by 75 basis points on Thursday.
Eurozone data releases for this week conclude with Germany’s Balance of Trade and Spain’s unemployment change today. Germany’s balance of trade figures for July were forecast at €6.2bn and fell sharply against market expectations this morning. The latest data reveals Germany’s trade surplus declined to €4.9 bn.
Spain’s unemployment rate was released this morning. It was expected to raise to 5K and largely exceeded market expectations with figures of 62.1K recorded.
