Monday, 17 August 2026Europe · Analysis
Independent · Brussels & Berlin
Person
Deputy chief euro zone economist, Capital Economics
The single currency reached its highest level against the dollar since 2021 while Trump welcomes the greenback's decline. Economists are split on whether the eurozone can absorb another competitiveness shock.
Flash data shows headline inflation below the 2% target for the first time since 2021, with services prices cooling sharply after an Easter distortion.
The European Central Bank delivered its sixth rate cut in nine months but changed its language in a way analysts read as a hawkish shift, even as it lowered growth forecasts and flagged trade risks.
Headline rate rises for third consecutive month while core inflation holds at 2.7%, complicating the European Central Bank's path to lower interest rates.
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