The euro suffered yesterday, losing as much as 1% or more against the Australian and Canadian dollars and by around 0.50% against the USD and GBP.
How much of the drop can be blamed on the European Central Bank (ECB) raising rates, and how much on a mixed picture of economic data, is a moot point.
The ECB raised interest rates by 25 basis points (0.25%) yesterday, to 3.75%. Bearing in mind that this time last year the interest rate was 0%, ECB president Christine Lagarde put at least some of the blame for soaring inflation on producers. She said: “In some sectors, firms have been able to increase their profit margins on the back of mismatches between supply and demand, and the uncertainty created by high and volatile inflation.”
There is no public holiday on Monday in Europe, but even so there is little of interest on the data front until Wednesday, with a final reading for German inflation.
EUR/USD past year
