The euro has strengthened against most major currencies and is trading around monthly highs against the dollar after President of the European Central Bank President Christine Lagarde confirmed expectations of a July interest rate hike.
Speaking yesterday, Lagarde said she anticipated an end to the asset purchase programme early in the third quarter. “This would allow us a rate lift-off at our meeting in July, in line with our forward guidance,” she confirmed. Lagarde is due to speak again this evening.
German PMI data released this morning came in slightly better than predicted, with the services industry seeing an improvement in May and the manufacturing industry seeing a smaller decline than expected.
