The news puts further pressure on the euro which dipped against the pound falling from 0.84 to 0.83 this morning.
While the UK also faces surging inflation, the Bank of England has acted by raising interest rates in December after months of speculation.
Jesús Cabra Guisasola, Senior Associate at Validus Risk Management, suggested the euro could also continue to depreciate against the US dollar in 2022 if US central bank the Federal Reserve pushes ahead with expected rate hikes.
The European Central Bank has held course on leaving rates unchanged with frequent suggestions from President Christine Lagarde that a rate hike would be unlikely before 2023.
source: express.co.uk