The euro appears to be taking its lead from the dollar’s dynamics but is slightly stronger this morning.
After the majority of European Central Bank members offered a dovish and more relaxed view towards eurozone inflation, Klaas Knot, the Dutch Governor, argued a more hawkish stance yesterday, suggesting that the ECB’s PEPP should end in March. Nonetheless, markets do not appear to believe that his comments will override the majority viewpoint.
French inflation rose 0.3% year-on-year in September, beating market expectations and reaching the highest rate since October 2018. Balance of trade figures for the eurozone will be released later this morning. The eurozone’s trade surplus is expected to have narrowed from €20.7 billion in July to €16.1 billion in August.
