The euro strengthened against the dollar at the end of last week following a change of stance from the European Central Bank. It announced that it would tolerate inflation above 2%, which is a shift from its previous target of ‘just below’ 2%.
This week, inflation rate data for Germany will be released, followed by inflation rate figures for the Eurozone on Friday.
Again, the markets will be watching this inflation figure closely to see if it will prompt the ECB to take action with regards to tightening monetary policy.
