020 7898 0500The only release of note from the eurozone yesterday was the construction output for April. The figure had been expected to increase to 2% from an upwardly revised 1.2% the month before. However, year-on-year, the figure actually came in at 1.8%. While output increased in Germany and France, it fell in Spain.
Movements between the euro and sterling were fairly minimal, but the euro weakened against the dollar, which posted a good day against a basket of currencies. The single currency dropped to fresh 2018 lows against the greenback and the question really is when the bottom will come. Comments made by the European Central Bank last week have not helped matters but economists appear to believe that the weakness is a correction and the euro could soon bounce back against the dollar.
It is another quiet day for the eurozone, but the ECB President, Mario Draghi, is set to deliver a speech. The rest of the week is a busier affair, so it will be interesting to see how the euro responds to those data releases.
