The euro has strengthened against the pound and the dollar due to a number of reasons. Optimism surrounding peace talks in Ukraine gave the single currency a lift earlier in the week.
Since then, high inflation figures from Europe may have also helped the euro. Inflation figures for Germany and Spain accelerated to their highest levels since the 1980’s in March, largely due to the prices of natural gas and mineral oil products.
Comments from European Central Bank President, Christine Lagarde, may also have helped the euro. She said yesterday that “we will take whatever action is needed to pursue price stability and safeguard financial stability.”
Several ECB officials will speak later today.
