The single currency strengthened by around 1% over the past week and very marginally against sterling last week.
It’s a busy week for data, especially on GDP, unemployment and inflation.
With economic growth vs inflation worrying governments, yesterday’s marginally better than expected German inflation figures (although still 3.8% year-on-year), and this morning’s drop in unemplyment, has all been encouraging, but this morning we’ve also seen France’s inflation rate worsen to 1.9%, although GDP also rose faster than expected at 1.1% for the quarter.
By the end of the week we’ll see Purchasing Managers’ Index (PMI) results across the board for the eurozone as well as for individual countries. Will parts supply shortages continue to affect manufacturing and Covid cases to hit services?
