The European currency today experienced an unexpected boost as comments from the European Central Bank showed a more hawkish stance regarding the single currency. More specifically, the ECB’s economists stated that economic growth is strong across the eurozone and would cause inflation to rise at a healthy pace. This gave the euro a much-needed boost and allowed it to climb to weekly highs.
Meanwhile, the eurozone is still a bit troubled about Italy. It is not certain yet what the new government’s financial policy will be, but many analysts expect a discussion on debt forgiveness. So far this has affected Italian markets negatively, with their stocks performing worse than all of their other European counterparts.
Because of the already present tension on the financial markets due to talks of tariffs and trade disputes, even events that would normally go unnoticed might have a significant impact in this environment.
