The euro seems to have caught some wind in its sails after recent comments from ECB chief economist Phillip Lane. In his opinion, there is a chance that the transmission of interest rate increases to curb price increases may be limited, which will require entering an even more restrictive level of interest rates. At the same time, Lane points out that he has not observed any "de-anchoring" of medium-term inflation expectations.
It can also be pointed out that the economic head of the IMF pointed out that the energy shock in Europe is not a temporary phenomenon and may extend the period of high inflation.
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Open real account TRY DEMO Download mobile app Download mobile appIt is worth noting that inflation is rising not only in the euro area but also in other European countries. Fresh data from the Czech Republic and Hungary showed that inflation exceeded 18% and 20% respectively.
EURUSD - Looking at the H4 chart, the current rebound looks only like a short-term correction. Moreover, the price reacted to the 14-period average. However, a slight slowdown of the downward trend can also be observed. Wednesday and Thursday are key days for EURUSD due to the publication of FOMC minutes and the release of US inflation. Source: xStation5
