While the euro is stronger against the pound and the dollar this morning, tomorrow the eurozone will see the latest inflation rate (flash) for December. Market participants will be keen on seeing if this triggers further movement in euro rates.
In the previous data, markets saw consumer price inflation for November revised to 10.1% year-on-year, which was slightly up from the preliminary estimate of 10.0%.
The rate also slowed for the first time since June 2021 and from October’s record high of 10.6%. Despite this, November’s rate remained well above the European Central Bank’s mid-point target of 2.0%. Thus, policymakers are likely to continue raising interest rates for some time.
