ECB President Lagarde's latest comments did not cause much volatility on the markets. As expected head of the ECB remains hawkish, emphasizing the need for further tightening. The market is pricing in a 90% chance of 50 bps at the February meeting with the remainder at 75 bps.
Key takeaways from Lagarde speech:
-
We have stated unequivocally that ECB interest rates must continue to rise significantly and steadily.
-
Europe's inflation rate is far too high.
-
We must reduce inflation and we will meet this objective.
-
As an economy that is very open to trade and deeply integrated into global supply chains, we are vulnerable to geopolitical headwinds.
EURUSD rose slightly and is testing local resistance at 1.0870. Source: xStation5
Three markets to watch next week (23.10.2026)
BREAKING: France slows down, Germany holds on. Euro falls below 1.12
Chart of the Day: Is USDJPY running out of road? Inflation forces the BoJ to act, but the Fed could spoil the Yen’s rally
Macro Calendar: Preliminary PMI Readings and Earnings Ahead
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.