The euro is still trading around its highest levels against the dollar in four weeks. This is primarily down to a combination of dollar weakness and the pressure on the European Central Bank to wind down its Pandemic Emergency Purchase Programme after inflation rose at the fastest rate in almost a decade.
The euro’s strength against the dollar was also not affected by yesterday’s better-than-expected US jobs data, however, markets will be watching today’s non-farm payrolls data closely.
The eurozone benefitted further from expectation-beating PPI figures, which rose by 2.3% in July and 12.1% annually. Retail sales data will be released later.
