The euro has strengthened slightly against the pound but remains weaker against the dollar following poor economic data which has amplified fears of a technical recession.
Along with worse-than-expected retail sales data for Germany, French inflation increased by more than expected, to 5.8% in June. However, the unemployment rate in the eurozone fell to 6.6%, down from 6.7% the month before and better than expected.
Economists have suggested that the eurozone economy could enter a recession before the end of the year.
Today, all eyes will be on eurozone inflation which is expected to have risen from 8.1% to 8.4%. Any surprises could impact the euro.
