EUR/USD picks up bids towards 1.0550 ahead of German IFO data, recession in focus

EUR/USD adds to the first weekly gains in four amid quiet session. Recession fears keep markets dicey, US dollar fails to track firmer yields. Hawkish ECBSpeak, repetitive comments from Fed’s Powell favor buyers. German IFO sentiment figures for June, and second-tier US data may entertain traders. EUR/USD renews intraday high near 1.0530 as it eyes … Read more

Stronger rate hikes could become necessary if ECB falls behind the curve

“The risk of inflation expectations becoming de-anchored has risen over the past months,” European Central Bank (ECB) Governing Council member and German central bank head Joachim Nagel said on Thursday, as reported by Reuters. “If monetary policy falls behind the curve, even stronger hikes in interest rates could become necessary to get inflation under control,” … Read more

Will make sure that inflation returns to its 2% target over medium term

In an Economic Bulletin article published on Thursday; the European Central Bank (ECB) underscored challenges to the economy from higher inflation. Additional takeaways The Governing Council will make sure that inflation returns to its 2% target over the medium term. The June 2022 Eurosystem staff macroeconomic projections for the euro area foresee annual inflation at … Read more

EUR/USD holds to its gains around 1.0570s as buyers eye a re-test of 1.0600

The common currency continues its recovery in the week, up by 0.81%. The market mood remains fragile, though Wednesday weighed on the greenback. EUR/USD Price Forecast: Upward biased in the near-term, a test of the 1.0600 figure is on the cards. The shared currency extends its gains in the week, advances for the third straight … Read more

Europe’s economy seen ‘far’ from stagflation scenario

The European Central Bank (ECB) researchers said Wednesday in a report, the European economy is unlikely to witness a stagflation scenario similar to the one seen in the 1970s. Key takeaways While growth forecasts were cut and price expectations raised following Russia’s invasion of Ukraine, economic activity is still seen increasing next year and inflation … Read more

France should escape recession this year, inflation still too high

European Central Bank (ECB) policymaker and French Central Bank head Francois Villeroy de Galhau said on Wednesday, France should escape recession this year but inflation is still too high. Additional comments Inflation too high in France but lowest of all euro zone countries. Jobless rate in France should stay below 8% by 2024. Companies in … Read more

Do not see a situation where we would need to revisit plan for July decision

“The European Central Bank (ECB) will not revisit its decision to raise interest rates by 25 basis points at its July 21 meeting,” said ECB Chief Economist Philip Lane on Monday per Reuters. Additional comments Negative rates are no longer appropriate for the bloc, but the exit will be done in two steps, first by … Read more

Seeing increased risk of correction of real estate prices

European Central Bank (ECB) President Christine Lagarde told the European Parliament on Monday that risks to financial stability have perceptibly increased since the beginning of this year, as reported by Reuters. Lagarde further added that they see an increased risk of a correction of real estate prices. Commenting on the labor market conditions, Lagarde noted … Read more

Recession not a baseline scenario for eurozone

While testingifying before the European Parliament, European Central Bank (ECB) President Christine Lagarde acknowledged that they must be attentive to recession risks but noted that recession was not their baseline scenario for the eurozone, per Reuters. During her testimony, Lagarde said that she will not be revealing any features of the new bond-buying tool and … Read more