ECB Press Conference - Lagarde stays dovish and supports further DE30 rebound

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.

Source: xStation5