The Euro continues its downward spiral against other major currencies as the European Central Bank (ECB) maintains a cautious and flexible approach to monetary policy, in stark contrast to the US and UK as they look to hike rates this year.
PMI data for the Eurozone dipped in December as the Omicron variant spread throughout Europe. Restrictions to contain the virus negatively impacted activity in Germany’s services sector. The PMI reading of 53.3 was less than the flash estimate of 53.4 and remains above the 50 mark – the level used to distinguish between expansionary or contractionary economic conditions.
