ECB’s Lagarde: Can’t jump to conclusion that inflation target is a done deal

  • “We are not unhappy with what we have seen,” on inflation.
  • Hopes inflation can get back to target sooner than projected
  • Inflation numbers are relatively reassuring
  • We “absolutely confident” in hitting inflation target sustainably in the course of 2025 but not sure when
  • We have to be very sharp in evaluating services inflation
  • European consumers don’t consumer as much as Americans
  • The pace of cuts is to be determined later
  • I don’t want to speculate on what it would take to cut 50 bps
  • I don’t know where neutral is

The euro is struggling again today alongside the pound. Most of the recent EUR/USD drop was driven by dollar strength but that’s not the case today.

This article was written by Adam Button at www.forexlive.com. Source