The euro is slightly stronger against the pound and is relatively unchanged against the dollar this morning.
German inflation data surprised markets by jumping by 5.3% year-on-year in December, an increase from November and the highest reading since 1992. It is thought that the end of the temporary VAT tax cut, rising oil prices and rising prices across supply chains have caused this surge.
Later today we will see inflation for the whole eurozone which is expected to fall. Data for eurozone consumer confidence and retail sales will also be released today.
