The euro weakened over the course of Thursday, mainly due to dollar strength and poor economic data for the eurozone.
Eurozone unemployment came in higher than expected, and inflation data for both Italy and France revealed that prices have risen in both countries, above market expectations. Later this morning we will see inflation data for the whole eurozone, which is expected to rise.
In an attempt to boost the Russian economy, President Vladimir Putin has demanded that “unfriendly” European states pay for gas in roubles from today. He added that “if such payments aren’t made, we will consider this a failure by the client to comply with its obligations” and could rip up contracts to supply gas.
Germany and France have condemned this request, describing it as “political blackmail”.
