The euro has stabilised against the dollar and is still stronger against the pound this morning following unexpected comments from the President of the European Bank, Christine Lagarde, last week.
Last week, Lagarde opened the door to interest rate hikes in 2022. However, on Monday she attempted to temper these comments by saying that there was no need for the extensive tightening of monetary policy.
The markets will be listening closely to speeches from two ECB officials tomorrow morning. Any comments about monetary policy and interest rates could impact the euro.
