EURUSD is down considerably below 1.07 and DE30 us above 15700 points at the start of the press conference, as the ECB in a statement signalled the end of a hiking cycle. Lagarde remarks about the situation in the economy, projections and further meetings:
- Inflation is still seen as too high for too long
- Rates were raised to reinforce the commitment to the inflation target
- The ECB decided to lower GDP projections considerably. Recent indicators suggest a weak Q3
- Lagarde repeats key statements that suggest that the hike cycle is over
- Rates will remain at sufficiently restrictive levels for as long as necessary (the most dovish statement from the ECB so far)
- The labor market is resilient, governments from EMU should roll back support measures
- In the coming months, inflation will fall
- Rates at the current level will help deliver 2%.
At 01:47 Lagarde stays dovish which is a change of her stance from previous press conferences as she usually was more hawkish than statements. DE30 continues a strong rebound and approaches an important resistance zone close to 15800 points.
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Source: xStation5
