Sterling and dollar weakness have allowed the euro to strengthen against both currencies this week. However, it’s unclear as to whether this rebound will be sustainable.
After escaping the worst of the pandemic last year, countries in eastern and central Europe have now seen a spike in infections. Poland, Hungary, Ukraine, Slovakia and the Czech Republic are all dealing with a surge in cases, although some have quicker vaccine rollouts than others.
PMI data for Germany was released this morning, beating expectations. Both the services and composite figures have progressed into expansion territory, showing that the services and manufacturing industries grew in March. PMI data for the Eurozone as a whole were also better than expected, with composite PMI edging into expansion territory.
