The euro strengthened by 1.2% against the US dollar yesterday. While it fell sharply against the pound in the middle of the day, it regained strength by the end of trading.
There were more final results for inflation in the eurozone, with 8.9% in Italy.
This morning we’ve had new car registrations in the eurozone which grew by 9.6% in the year to September. However, this was largely because of the low sales in September 2021, hampered by the semi-conductor shortage.
Later this morning will be the German ZEW Economic Sentiment Index for October.
The markets are now beginning to price in a 75 basis point raise in interest rates by the ECB on 27th October. One of the ECB’s rate setters, Joachim Nagel, said that several more rate hikes would be needed to take inflation, at which point the central bank must withdraw support at a reasonable pace.
EUR/USD past year
