A torrid day for the single currency saw it lose well over half a percent against most major currencies.
The reason was collapsing optimism among business leaders in the Purchasing Managers’ Index (PMI), which fell at the fastest rate since the pandemic in some countries. The upside for business leaders is that it lessens the need for more interest rate rises from the ECB on Thursday. Its medicine is clearly working already.
This morning we will hear the Ifo Business Climate report for Germany, but the big event of the week is undoubtedly Thursday’s rate decision.
EUR/USD past year
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