The euro is slightly weaker this morning as rising infection rates across Europe are causing concerns over the economy and inflation. Chief Economist Phillip Lane stresses that “weak demand and rising economic slack have added to disinflationary pressures in an environment that is already characterised by low inflation”.
It could be that the ECB introduce extra support. However, minutes from the ECB’s meeting last week revealed that whilst some policymakers think that extra support could be needed, others oppose this as the economy is still bouncing back quicker than expected.
ECB officials, including President Christine Lagarde, will make speeches today. It’s a fairly busy week for data, with economic sentiment figures tomorrow and inflation rate data on Friday.
