The euro is still weaker this morning due to a lack of eurozone data and markets continuing to favour the pound and dollar.
As we head into 2022, the euro could continue to suffer from the divergence in monetary policy between the European Central Bank and that of the other major Banks. In comparison to the Bank of England and the US Federal Reserve, the ECB has had a relatively dovish stance on monetary policy, despite rising inflation.
Inconsistent restrictions within the eurozone to tackle the wave of the Omicron variant are also taking a toll on the euro.
