The euro weakened against the pound and dollar yesterday. This was partly due to the strength of the other two currencies. The single currency also suffered due to data showing that underlying price pressures have dropped again in the Eurozone. Despite this, the euro is stronger this morning.
Data also showed that the annual inflation rate in the Euro Area is expected to pick up to 0.3% in June 2020 from a four-year low of 0.1% in the previous month and above market expectations of a 0.1% gain.
We’ve seen more data from the Eurozone already this morning. German retail sales came in better than expected, showing a 13.9% uplift month on month, compared to a prediction of just a 3.9% rise. Markit Manufacturing PMI for both Germany and the Eurozone beat expectations and showed a significant improvement from the last readings.
