The euro has stabilised after falling almost 1% against the dollar yesterday as markets begin to show cautious optimism over the Russia-Ukraine crisis. However, more volatility is expected today.
President of the European Central Bank Christine Lagarde will speak later on the impact of the Russia-Ukraine crisis on the ECB’s monetary policy outlook. Normally dovish, if Lagarde adopts a more hawkish tone, the euro could stay supported.
Looking at economic data for the eurozone, the German economy expanded at a slower rate in the final quarter of 2021 while France saw its annual inflation rate rise to 3.6% in February.
