The euro is still weak against the dollar this morning and EUR/USD reached parity yesterday for the first time in 20 years.
This has occurred due to a mixture of both dollar strength and euro weakness. The euro continues to suffer as a result of the war in Ukraine and its impact, high inflation and an energy crisis. As well as this, the European Central Bank’s ‘gradual’ approach to hiking interest rates contrasts with the Federal Reserve’s aggressive stance.
Despite this, there was some positive economic data from the eurozone yesterday. Industrial production rose 0.8% month-on-month in May, accelerating from 0.5% in April and beating market expectations of a 0.3% gain.
