The euro was trading around its lowest level since late November against the pound yesterday but has since strengthened against both sterling and the dollar following a European Central Bank meeting.
Unlike its central bank counterparts, the ECB made no drastic changes to its monetary policy, maintaining interest rates at 0.0%. However, the Bank did confirm it will bring its Pandemic Emergency Purchase Program to a close in March 2022 and will expand Assets Purchase Program to €40 billion per month Q2 and to €30 billion in Q3 – its first real signs of tapering.
Markit PMI was also released yesterday. In Germany, service activity fell to a 10-month low while manufacturing activity rose to a three-month high. This trend was also seen in the eurozone as a whole, with service PMI falling and manufacturing PMI rising.
