The SPD’s success in the polls – although who will eventually end up as government remains unclear – was one of the factors weighing on the euro at the start of the week
Yesterday’s data included falling unemployment claims in France, but of more interest was a speech by European Central Bank (ECB) chief Christine Lagarde, who reiterated that inflation was temporary, the pandemic stimulus measures is proving effective and that the ECB would not be raising interest rates before 2023.
One bright spot for the euro this morning is GfK Consumer Confidence for Germany which leapt ahead to 0.3, beating a market expectation of -1.6. French consumer confidence is also higher, with French households believing that their standard of living is rising.
Later today we have more speeches by ECB members.
