The euro dipped against the dollar at the end of last week after eurozone inflation came in at a 13-year high. It has strengthened slightly this morning.
Soaring energy costs, tax increases and persistent supply chain problems led to October’s year-on-year inflation coming in at 4.1%, far above market expectations of 3.7%. This came just a day after the European Central Bank maintained interest rates and said that inflation was “transitory”.
Markets will now be waiting to see if inflation does come back down, as the ECB predicts, or whether the Bank decides to change its stance on raising interest rates.
This week, Markit PMI, employment figures and PPI figures will all be released for the eurozone.
