Luis de Guindos, former Minister of Economy, Industry and Competitiveness in Spain, and currently the Vice-President of the ECB, spoke at the opening of the 26th edition of the Euro Finance Week conference in Frankfurt. De Guindos expects a short-term rebound in inflation in the coming months. At the same time, the euro area economy is likely to remain even more subdued, with signs of a weakening labor market.
Banker stressed that the ECB will reassess inflation outlooks and necessary policy actions at the December meeting, expecting a general disinflationary trend in the medium term. December forecasts will help the ECB decide on monetary policy in the coming months in 2024. Emphasis will be placed on maintaining interest rates at sufficiently restrictive levels to curb inflation, while considering the impact of higher financing costs and fiscal policy on sovereign debt serviceability. The ECB aims to achieve a sufficient level of interest rates to effectively control inflation.
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EURUSD quotes broke through the upper resistance zone at around 1.066, which coincides with the 23.6% Fibonacci retracement level of the last downward move. The current resistance zone, once breached, has now become a support level. However, in the recent days, bulls were not strong enough to continue this upward movement. The price has now returned back to this zone, testing it from above. However, quotes are slightly rebounding, suggesting a possible continuation of the upward trend. A key level will be 1.0757, which is also the 38.2% Fibonacci retracement of the last downward trend and a local resistance zone. Source: xStation 5
