The euro has strengthened this morning, mainly due to dollar weakness and positive news in the eurozone.
Eurozone inflation rose to 8.6% in June, as expected. Tomorrow we will see the European Central Bank’s latest interest rate decision and a speech by ECB President Christine Lagarde. A hike of 25 basis points is expected to try and tackle this rising inflation, but there are rumours of a potential 50 basis point hike. Any surprises could impact the single currency.
The euro is also being supported by news that Russian gas company Gazprom will resume providing gas to the EU on 21st July, as planned.
Later today, eurozone consumer confidence figures will be released. A fall of 1.3% is expected.
