The euro received a boost yesterday after the European Central Bank suggested that an interest rate hike could happen in July. This morning, the single currency is still stronger against the pound but is weaker against the dollar.
Inflation for the eurozone in March came in slightly lower than expected, at 7.4%. Nonetheless, this was still up from the 5.9% figure in February so supports the rhetoric that the ECB may need to raise interest rates next month.
ECB President Christine Lagarde will speak later today. Any further comments surrounding potential interest rate hikes could cause the euro to strengthen.
Markets will also look to eurozone PMI data for an indication of where the euro might head next.
