The euro has weakened against the pound but is trading around similar levels against the dollar this morning as markets keep an eye on Russia-Ukraine headlines.
Yesterday, there were reports of shelling in the Ukrainian territory of Donbas, something that Russia and Ukraine appear to be blaming each other for. As such, markets are turning to safe-haven currencies, such as the dollar.
Thursday afternoon also saw European Central Bank official, Philip Lane, speak. He reiterated the ECB’s dovish stance on monetary policy, suggesting that overreacting to high near-term inflation could result in “an excessive monetary tightening that pushes inflation persistently below the 2% target over the medium term”.
