ECB Holzmann
- I definitely belong to those that think we should be very careful, that we should stand ready to hike again if needed.
- Not really worried about the growth outlook because despite rate hikes we still have stagflation,
- It could be much, much worse and we are in pretty good shape there
- Don't expect any reduction in rates soon, eventually it will happen but for the time being I don't see it
- We need to stay vigilant
Cautionary tone on rates from ECB's Holtzmann.
The EURUSD backed off in the US session but held above the close from Friday near 1.0726. The low just reached 1.07253, and is back up at 1.0747 currently.
On the topside, the 38.2% retracement of the move down from the July 18 high comes in at 1.07637. That is the next upside target (up to 1.07816). Above that, and the 100 and 200-day moving averages are converged at 1.0804. Needless to say, having the two longer-term MAs converged increases that levels importance going forward.
EURUSD keeps buyers in control