The euro is under pressure following a statement from ECB President Christine Lagarde
The euro is trading flat against the US dollar during the early part of Tuesday’s session. This follows the euro’s losses recorded on Monday, when it touched the lowest point against the greenback since July 2020. The single currency is under pressure, following a statement from ECB President, Christine Lagarde, who reiterated the central bank’s commitment to its current dovish stance, acknowledging that rising inflation is likely to linger on for longer than previously expected, but highlighting the potential negative impact that any tightening could have on growth in the eurozone. This cautiousness on the part of the ECB is likely to continue to weigh the euro down, especially as other central banks, like the Fed and the BoE, are showing signs of having a greater desire to control consumer prices by hiking rates.
Gold is up during early Tuesday trading, having reached a five-month high during the previous session, after prominent figures in some of the world’s leading central banks reiterated their concerns over rising consumer prices. The price of the precious metal remains supported, despite the strengthening dollar, as inflation-related worries drive higher demand for the safe haven of gold.
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