The euro is on track to have its best week in relation to the US dollar following Lagarde’s speech
The euro is on track to have its best week in relation to the US dollar since March 2020, with the momentum carrying through early Friday trading. After ECB president Christine Lagarde’s press conference on Thursday the markets reacted by bidding the euro, interpreting her acknowledgment of inflationary risks, and the absence of the usual characterisation of rate hikes in 2022 as very unlikely, as signs of a potential change on forward guidance. With inflation running hot in the euro zone, Lagarde opened the doors for a change in guidance at the March meeting, which may see earlier than expected tightening by the ECB; a prospect that triggered an immediate reaction in the markets, with the single currency having since then gained more than 1% against the US dollar.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.