The euro has strengthened around 1% against the pound but has erased its gains against the dollar.
The single currency is largely being driven by other currencies following the interest rate decisions of both the Bank of England and the Federal Reserve.
Speaking yesterday, European Central Bank official, Philip Lane, said that the Bank is preparing for a sequence of rate hikes as eurozone inflation stands at a record high of 7.5%.
“I think it’s clear that at some point we’re going to be moving rates, not just once, but over time, in a sequence,” Lane told the Bruegel think tank. “When exactly will that start?… It should not be seen as the most important issue.”
Industrial production figures for Germany shrank 3.9% month-on-month in March, far below market expectations of a 1% drop and the biggest decline since April 2020.
