Like GBP/USD, the EUR/USD pair also entered December on a strong footing reaching a fresh six-month high.
This week, member of the European Central Bank’s (ECB’s) supervisory board, Kerstin Margareta af Jochnick will speak. This follows ECB policymakers agreeing that the Bank should continue tightening monetary policy to combat soaring inflation, even in the event of a “shallow recession”.
According to officials, the inflation outlook continued to worsen as it climbed far too high and repeatedly above the projected figures. The ECB warned that a wage-price spiral could emerge. However the ECB is likely to reassess this as just last week, inflation figures for a number of eurozone countries came in below market expectations.
