With little euro data to report so far this week, movement in Europe’s single currency has been limited, remaining flat against the pound for the majority of the week,  gaining slightly against the weaker USD which we’ll hear about in the next part of the report.

Currency Pair% Change (Month)Difference on £200,000
GBPEUR2.25%€5,060

Industrial data for Italy did provide some support for the euro to hold its ground. The data showed that industrial production in Italy rebounded stronger than expected in May, seeing a big increase from -0.8% to 0.9% , flying past modest expectations of a 0.1% expansion.

This surge in production provided a  boost for euro investors as it suggests the Eurozones 3rd largest economy is a little more resilient that previously believed and it may not be all doom and gloom for the Italians.

Eurozone economic data paints bleak picture for the EU

ECB minutes released today

At 12.30pm today the ECB will release minutes from its latest policy meeting in June. The minutes will be watched closely to see if the ECB provide any clues to the banks policy which could dictate the euro’s value. If there are indications that policy makers are in favour of implementing additional stimulus measures by the end of the year, through either cutting already record low rates or restart its bond purchasing programme, this could weaken the euro.

The problem for the pound is it may struggle to take much, if any, advantage as sentiment could remain subdued in the face of the continued political uncertainty.

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