The single currency flip-flopped against both GBP and USD yesterday but remains stronger on the week against all major currencies.
Problems for the euro include the opposing strategies from the European Central Bank (ECB) and the Federal Reserve in the US on interest rates, with the ECB adopting a considerably more dovish stance (meaning less likely to raise interest rates in response to inflation).
Omicron is also a severe worry for the eurozone, with a lower rate of booster vaccinations in its major economies.
On the monetary policy issue we’ll be getting final inflation figures for November tomorrow from France, Spain and Italy.
Of more interest on the economic front is the first reading for Markit PMI across the eurozone and its major economies tomorrow.
