The most-notable signal from the ECB press conference has probably been the boost in inflation forecasts, particularly for next year.
- 2021 2.6% vs 2.1% in Sept
- 2022 3.2% vs 1.7% prior
- 2023 1.8% vs 1.5% prior
- 2024 1.8%
The numbers still fall below the ECB target in 2023 but Lagarde highlighted that there are 'possibly' upside risks while noting that energy prices should stabliize. That said, energy prices have been soaring this week so I'm not sure that's built in.
The overall market is selling the US dollar today on positive risk sentiment so this isn't just a euro story but the euro is near the highs of the day.
