The euro is weaker against the dollar this morning amidst the gas crisis and growing interest rate concerns. In addition to the squeeze on eurozone gas supplies following Russia’s decision to switch off the euro area’s main gas pipeline in response to sanctions, higher borrowing costs are on the horizon for the eurozone.
The European Central Bank’s interest rate decision will be announced tomorrow and markets are expecting the ECB to lean towards a 75 basis point increase in an attempt to control the eurozone’s soaring inflation. Later this evening eurozone market watchers will be listening closely as member of the ECB’s supervisory board, Kerstin af Jochnick, will speak at 6:30pm.
