Eurozone Economy

EUR/USD stalls after inflation hits new milestone high but ECB seen as unlikely to respond with policy change.

Early 2022 should see the rate of price increases in the Eurozone decline according to economists.

The Bank of America European Fund Manager Survey - a closely watched indicator of investor sentiment - shows expectations for further gains in Eurozone assets although inflation fears are growing.

Eurozone data confirmed on Friday that last quarter was one to be forgotten in GDP terms while predictably soft inflation figures showed the European Central Bank (ECB) still has its work cut out before it, although on both fronts there may be hope for the bloc's economy heading into summer.

Eurozone inflation rebounded further out of its 2020 trough in March, data from Eurostat confirmed on Friday.

The Euro exchange rate complex was put on the back-foot on Thursday, February 21 after Eurozone-wide activity data for February showed the area's economy continues to be weighed down by an under-performing manufacturing sector.