ECB president Mario Draghi is famed for his dovish approach to economic policy; it is entirely possible that by the time he steps down as president, the eurozone won’t have increased interest rates a single time during his tenure. Yesterday, rates were kept on hold as expected, with the central bank reiterating its commitment to halve its QE programme after September.
Like sterling, the euro moved higher against the dollar following surprising inflation data from the US, but against the pound it virtually did nothing. German inflation was also released and came in at 2% as expected.
Today, we have the balance of trade figures for July, as well as wage growth figures. The previous reading was 1.8%, so it will be interesting to see if it can push a little higher than this.