Despite a spectacular loss yesterday morning, the euro actually ended the day up on sterling yesterday, as well as markedly up on the US dollar – close to 1%.
Yesterday’s data including some pretty dire manufacturing PMI results, with purchasing managers in the manufacturing industries of almost all major European economies reporting declining optimism.
However, inflation has fallen in the eurozone to 6.1%, well below expectations, indicating that Europeans are doing what the European Central Bank wanted them to in its successive interest rate increases, spending less and thus forcing inflation down. Christine Lagarde said yesterday that the ECB would continue on this course.
There isn’t a great deal of data today, but Monday starts with Germany’s balance of trade and final results for services PMI across the Continent.
EUR/USD past year
