US strength bears heavy on the euro as it pushes high against a weak sterling

The euro had a mixed day on Monday, pushing to ten week highs against sterling but struggling against the US dollar. Against sterling, the single currency started well but it did lose ground as preliminary Consumer Price Index (CPI) data from Germany came out worse than initially expected at 0.3% instead of 0.6%. The weakness against the US dollar was mainly down to US strength and the Chinese stock market crashing over 7%; with the American currency being seen as a safe-haven, the euro suffered on the back of this.

This morning unemployment claims from Germany are released and forecast to remain at 6.3%. At 10am, we have Consumer Price Inflation data; this is not considered a major piece of data, but should give us an interesting initial reading. It is forecast to improve from 0.1% to 0.4% – which would be a much welcomed boost for Eurozone and a positive sign globally as many of the major economies around the world are missing their inflation target.