020 7898 0500The big talking point in the Eurozone yesterday was the European Central Bank meeting. The ECB released a positive spin on its rhetoric at yesterday’s meeting and have increased its forecast for economic growth whilst keeping rates on hold. In addition, they hinted that there would be no further rate cuts.
Draghi and his colleagues raised its growth forecast for the region to 1.9% for 2017, which was an increase of 0.1% whilst stating that it no longer saw risks to growth being skewed to the downside.
However, we saw ECB strike a more dovish tone on inflation as it expects it to be subdued. Ultimately, this means they will be continuing with their quantitative easing (QE) measures. The single currency weakened on the back of these comments, as the market was hoping for a change of tone and signal of a tapering of QE.
This morning, in light of the results from the UK general election, we have seen the euro strengthen against the pound.
