The Eurozone economy continues to perform well yet the European Central Bank still shows no inclination to tighten monetary policy; a perfect combination for a stable currency. Note that figures released late in July showed that Eurozone economic sentiment hit a record high that month and that the Eurozone unemployment rate fell to 7.7% in June from a revised 8.0% in May and better than the expected 7.9%. With the jobless rate falling, there is every chance that spending in the region will rise and that overseas travel will take off. So while some analysts worry that a slower rate of growth in sentiment may suggest it is near its peak there is no hard evidence of this so far. Indeed the biggest worry is that more travel will mean a further spread of the delta variant of Covid-19.
