Despite the pound strengthening, the euro has focussed on negative headlines and is still weak against both the pound and the dollar.
The euro is suffering as the conflict in Ukraine will have a greater economic impact on Europe than it will on the US or UK. The sanctions placed on Russia will severely affect several European nations, including Germany and Italy.
Eurozone inflation figures were released yesterday, showing that inflation surged to 5.8% in February. This exceeded expectations of 5.4% and was a jump from January’s reading of 5.1%.
PMI figures for both Germany and the eurozone will be released later this morning, showing how both economies performed in February.
