We could see some volatility for the euro today due to the European Central Bank’s monetary policy meeting, which will take place later. President of the ECB, Christine Lagarde, has stuck to her ‘patient’ approach towards monetary policy so far.
Yesterday, eurozone inflation came in higher-than-expected year-on-year at 5.1% in January, an increase from December’s figure of 5%. This was unexpected, as inflation was predicted to fall at the start of this year. This higher figure could spur the ECB to take a more ‘hawkish’ stance at its meeting later.
A series of PMI figures will be released before the meeting this morning for both Germany and the eurozone.
