The market major has again risen. The current quote is 1.0390.
On Monday, the macroeconomic calendar was empty but there were things to pay attention to.
The head of the European Central Bank Christine Lagarde yesterday underlined the readiness of the regulator to keep increasing the interest rate even if the PMI slowed down in the region due to inflation.
Economic growth is simultaneously hindered by high market uncertainty, tightening of economic conditions, and a decrease in the global demand. According to Lagarde, the GDP will continue falling at the end of this year and the beginning of the next one.
The ECB is going to cut down on the inflation pressure to medium-term levels. To reach the goal, the regulator will run up to all the necessary instruments. Target inflation is still 2%. Hence, the interest rate must let inflation reach the target.
By what Lagarde has said, the ECB will need to increase the interest rate by 50-75 base points at each meeting for the next 6-8 months, like the Fed is doing. However, the ECB has lost too much time: inflation has already sped up, and bringing it down in such circumstances will be hard.
The talks about the interest rate and especially its growth could support the EUR if Lagarde had sounded more realistic.
Source: Roboforex
