Inflation in the eurozone has been confirmed at 2.1% in July – above the European Central Bank’s target of 2%. The annual rate rose from 2% in June, pushed up by higher energy costs, according to the European Union’s statistics office Eurostat.
This inflation figure strengthens the argument for the ECB to push ahead with plans to end its bond purchasing program by the end of the year, and possibly raise interest rates at some point next year.
A rather quiet day on Friday with the dollar retreating amid lower demand for the safe-haven greenback, as expectations grow that trade talks between the United States and China would ease tensions between the two countries. Easing worries over the fallout from the Turkish lira’s recent slide also helped strengthen the euro against the dollar. This week’s lower-level trade talks between China and the United States offer some hope that the two countries will find a way to head off a full-blown trade war