The Euro seems to overcome its problems related to the covid-19 vaccination campaign and is now profiting from a solid recovery that supports the common currency.
Germany’s ZEW institution is expected to release the Business Climate survey figures for June, and additional increases are on the cards. The EU reduced travel restrictions on Monday on tracv to using the “green passport” next month.
Furthermore, it seems the European “resurrection” is solid and does not fight with the issues seen in the US and its swift return to normal. While the headline inflation has soared to 2%, core prices are at 0.9% as of May, letting the European Central Bank to continue supporting the recovery.
Frictions are escalating towards the ECB’s decision on Thursday, where the Germany based institution is set to recognize the recovery. Ceasing from contraction, should keep the mood positive for the Euro.
In the US, the dust has settled from Friday’s sad Nonfarm Payrolls report – an increase of only 559,000 jobs against 664,000 expected – and from the optimistic comments by Treasury Secretary Janet Yellen.
The current finance minister and former Chair of the Fed said that an increase in interest rates would be a positive for the US economy. The central bank and markets are anticipating Thursday’s release of the Consumer Price Index figures. Any amount above 5% could disturb markets and boost up the dollar, but the dollar will likely remain under pressure on Tuesday.
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