After weakening against the pound and the dollar yesterday, the euro has started to recover slightly this morning amid a ‘risk on’ market mood.
In its latest report, the International Monetary Fund concluded that the euro area economy is recovering rapidly thanks to the vaccination campaign and monetary policy support. However, it also said that the fourth quarter of this year looks to be weaker due to supply chain issues, high energy prices and the re-implementation of stricter travel rules.
Data released yesterday revealed that economic sentiment for the Euro Area rose by 0.9 points to 26.8 in December, its highest since September. Today, there will be several speeches from European Central Bank officials.
