The single currency was the clear loser in this week’s data, pulling back against both sterling and the dollar after the latest flash PMI dropped into contraction territory. With Germany now forecasting just 0.5% growth this year, and services activity falling at a pace not seen since the pandemic, the European Central Bank heads into Thursday’s decision with an awkward split on its hands. Core inflation is still running above target while the private sector has just turned sharply weaker.
GBP/EUR: the past year
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