The euro has strengthened against both the pound and the dollar this morning following remarks from two European Central Bank officials. Both suggested that interest rate hikes could happen in July, which has caused the single currency to surge.
US Federal Reserve chair Jerome Powell, European Central Bank president Christine Lagarde and Bank of England governor Andrew Bailey are all due to speak in Washington DC later today. Lagarde’s comments, in particular, will be listened to closely following the remarks from her ECB colleagues yesterday.
Inflation data will be released for the eurozone today, which is expected to show increases both month-on-month and year-on-year. If the figures come in higher than expected, the euro could strengthen further.
The World Bank has warned of ‘human catastrophe’ due to rising food prices, which could send millions of people into poverty. The International Monetary Fund has said it would provide emergency funding to nations facing severe food shortages.
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