Euro loses ground as ECB mulls over inflation target change

10:45 AM July 18, 2019

Summary:

  • ECB is believed to call into question its “below but close to 2% inflation objective”
  • A change needs a review, would be implemented when draghi steps down
  • Euro moves down and approaches 1.12

The euro moved down all of a sudden after market participants were offered news that the ECB was reportedly mulling over a change in its inflation target determined as “below but close to 2%”, the news was brought by Bloomberg. A possible change would probably need a broader policy review and one could imagine it would be implemented later this year when Mario Draghi ends his term in office. That could be considered as the first material impact of an incoming change at the post of ECB governor - Christine Lagarde will lead the ECB since this autumn.

The EURUSD loses ground after the unexpected news brought by Bloomberg. Source: xStation5

Share:
Back

Trading CFDs on a leveraged basis involves a significant amount of risk. They may not be suitable for everyone, so please ensure you fully understand all of the risks.

Forex and CFDs are leveraged products and can result in losses that exceed your deposits. Please ensure you fully understand all of the risks.

Losses can exceed deposits

×