ECB's Vujcic remarks put some pressure on EURUSD

EUR appreciated strongly against USD during the European session, however bullish momentum lost its steam in the evening as markets digested fresh comments from ECB's Vujcic.

• Markets are right to price in 50 bps for the March meeting.

• Rates are about to enter restrictive territory.

• Labor markets are likely to remain strong.

• We must persevere as long as core inflation remains high.

• We must consider both headline and core inflation

• Headline inflation is set to fall.

• The role of the ECB is not to determine where the terminal rate should be.

The market is pricing in a 44% chance of 75 bps at the ECB March meeting

EURUSD retreated sharply from session high at 1.0620, erasing a large chunk of today's gains. Nevertheless as long as the pair sits above local support at 1.0580 another upward move may be launched. Source: xStation5