The euro is weak against the pound this morning and is stronger against the dollar, benefitting from greenback weakness. The easing political tensions in Italy are also providing support to the single currency. Mario Draghi is continuing talks with the largest parties in Italy in an attempt to form a government. Party members are due to cast their votes over the coming 24 hours.
German inflation data was released this morning, with the annual inflation rate confirmed at 1% in January, in line with preliminary estimates. It is the first increase in consumer prices in 7 months as higher VAT rates were passed on to the consumers after the temporary reduction in value added tax.
Month-on-month, the Consumer Price Index in Germany increased 0.80% in January. It is the highest reading since April of 2019.
