In some slightly positive news for the Eurozone, German flash inflation came in above forecasts, at 1.6% compared to 1.4% the previous year.
Nonetheless, the figure was still below the ECB’s target level, making this the third month in a row. Euro did strengthen slightly against sterling, but worries about the Eurozone’s economy continue. That said, core bond yields on Wednesday hit a three-week high, suggesting an improvement. It will be interesting to see the results of the zone’s year-on-year inflation rate today.
The higher-than-expected US growth helped weaken euro against the dollar, even as it moved upward against the pound.
