The euro reached a yearly high against the pound yesterday but has weakened slightly this morning. Against the dollar, the single currency is slightly stronger.
Figures for the German and EU ZEW survey on economic sentiment saw an improvement in May. While the numbers were lightly less pessimistic than in April they are still showing signs of a worsening economic situation.
In addition, German inflation figures reached a record high of 7.4% in April with soaring energy prices and above-average food prices being the main factors.
President of the European Central Bank Christine Lagarde is due to speak this morning. Markets will be listening for comments surrounding this inflation figure and the possibility of the end the Asset Purchase Program (APP) in Q3 of this year.
