The euro could set the tone for GBP/EUR and EUR/USD after the European Central Bank’s monetary policy meeting, which is due to take place later today. Any surprises could have an impact on the single currency.
Recent comments from several ECB officials suggest that the Bank could begin the process of ending its Covid support programme, PEPP. These comments followed the Eurozone’s latest inflation reading, which came in at a high 3%, well above the central bank’s target of 2%.
Despite this, the ECB has said it will let inflation run higher for a while to ensure that inflation stays closer to the target in the long run.
