020 7898 0500The euro suffered some losses against the dollar yesterday, but it made some gains against sterling. With no major economic data releases from the eurozone, the moves came as a result of events elsewhere. Continuing uncertainty over Brexit certainly didn’t help the pound’s cause, but neither did evidence of slowing wage growth.
Ongoing trade fears have also affected the eurozone’s economy, with the European Commission revising their economic forecasts down to 2.1% from 2.3%. It remains to be seen whether Trump will carry out his threat to impose tariffs on European car imports, but if he does then the economy could be significantly affected. Having said this, the US economy likely wouldn’t escape scot-free.
Today we will see the eurozone’s inflation rate for June, as well as construction output for May. The previous reading was 1.8% and it will be interesting to see if the sector has grown or shrank since then.
