The euro is still strong against the dollar this morning, helped by disappointing US data.
Speaking yesterday, European Central Bank Vice President Luis de Guidos said that inflation in the eurozone, which hit 5% last month, is not as transitory as previously thought and is at risk of exceeding projections this year.
Nonetheless, he reassured markets that the long-term risks remain balanced and that projections for 2023 and 2024 inflation remain below the ECB’s target of 2%.
Later this morning, we will see data for German GDP annual growth in 2021.
