The euro got a boost this morning as the European Council agreed to a deal on migration and Eurozone inflation reached 2.0% for June. Sterling benefited from an upward revision to the U.K.’s Q1 GDP. Markets are barely reacting to the upbeat U.S. core personal consumption expenditures. Canada’s April GDP beats expectations of no growth.

Euro boosted by migration deal

German Chancellor Angela Merkel can breathe a sigh of relief this morning after the European Council reached a deal on the region’s migration issue.

Merkel was under fire from members of her coalition government to strengthen Germany’s protocols. After a deal was not reached during talks leading up the E.U. summit, her only shot was to hope the 28 leaders of the bloc would agree to improve border policy around the E.U.

The E.U. will strengthen the exterior border of the region and set up processing centers in Africa. The EUR/USD spiked nearly 100 pips from 1.156 to 1.164 on the news.

The common currency received more help against the dollar this morning as the consumer price index for June hit 2.0% year over year. Estimates expected CPI to grow to 2.0% and it’s now reached the European Central Bank’s target. EUR/USD climbed higher to 1.166

Sterling gains on upward GDP revision

After gaining off the dollar’s weakness overnight, the pound got a boost from a better-than-expected Q1 GDP reading.

Previously coming in a 0.1% growth, GDP was revised to 0.2% growth quarter over quarter. With the economy growing faster than initially thought, this data backs the case for the Bank of England to raise interest rates in August.

GBP/USD pair reached as high as 1.318 before settling closer to 1.316.

PCE doesn’t pick up the dollar

The personal consumption expenditures for May were better than expected, but it did little to immediately help the dollar against the euro and the pound.

Core PCE for May grew 2.0% YoY, compared to estimates of 1.9%. Headline PCE also beat expectations, coming out at 2.3% YoY compared to estimates of 2.2%.

Despite the strong U.S. data, EUR/USD and GBP/USD are trading little unchanged.

USD/CAD falls on strong Canadian GDP

Canada reported that GDP for April grew 0.1%, beating expectations of 0.0%. The Canadian dollar gained on the U.S. dollar after the release, falling below 1.32.

Previously GDP grew 0.3% in March and higher growth rates are anticipated for May and June.