The euro fell to a three-month low against the dollar last week, due to bond market activity strengthening the greenback. It is still weak against the dollar and the pound this morning.
On Thursday, the European Central Bank will make their latest decision on interest rates. There will be a focus on how it will react to the recent rise in bond yields and inflation. It’s thought that the ECB could increase its forecast for inflation and lower the forecast for GDP.
Figures released this morning show that industrial production in Germany sank 2.5% month-on-month in January, compared to forecasts of a 0.2% gain. It follows a 1.9% surge in December.
Eurozone GDP will also be released this week, as well as German inflation rate.
