Euro hovers at seven-week high

The euro is broadly unchanged versus the US dollar after reaching a seven-week high yesterday.

In a lacklustre trading session the euro is holding its recent gains versus the US dollar, in what has been a relatively quiet morning in terms of economic updates. The latest industrial production figures from France showed a decline in June of 1.4%, compared with a drop of 0.3% in May, to highlight the deteriorating state of the French economy.

The Italian government reported a trade surplus of €3.68 billion in June, with economists expecting a surplus of €4.22 billion. It remains a positive sign that cash inflows from exports exceeded cash outflows from imports.

Meanwhile, Greek finance minister Yannis Stournaras has called for a common eurozone bond. If this were to be introduced, it would benefit countries like Greece who have a high borrowing cost, but the idea may not be popular in France or Germany.

US wholesale inventories are released at 3pm (London time), with economists expecting an increase of 0.5%. If the figure is below expectations the euro could rally.

Spot FX EUR/USD (DFB) chart

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