ECB president, Christine Lagarde spoke on Monday Europe time. Never underestimate the craftiness of Lagarde, EUR/USD has since tumbled.
Its not as if Lagarde added anything much new, but her uber-dovish messaging is in contract to the less dovish messages coming from other DM central banks, and even full-on hawkishness from some of the officials.
Justin had Lagarde's remarks here:
Lagarde was addressing the EU parliament. In a nutshell, this comment:
- If we were to have any kind of tightening approach to the current situation, it would actually do more harm than good”
- It would begin having an impact at a time when inflation is actually returning to lower levels
Checking out the EUR chart:
