The euro has been pulled in two directions — propped up by expectations of ECB rate rises but dragged down by Europe’s heavy reliance on imported energy. This afternoon’s press conference from ECB President Lagarde is the one to watch. If she pushes back against the market’s rate hike expectations, the euro could weaken. If she validates them, it could strengthen. Monday’s flash purchasing managers’ index (PMI) readings will then offer the first real snapshot of how businesses across Europe are coping with the energy shock.
GBP/EUR past year
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