EURUSD weakens slightly following ECB Lagarde and FED Mester comments

ECB president Lagarde and Cleveland Federal Reserve President Loretta Mester shared some hawkish comments in the afternoon, however their remarks did not cause any major moves on the markets.

Below we present key takeaways:

ECB Lagarde:

• I would not go so far as to say that inflation has peaked

• Rates are still in an accommodative range and have a long way to go.

• ECB is committed to bring down inflation to medium-term target

• May need to raise rates to a more restrictive level

• The risks to the inflation outlook are on the rise

• Inflation will eventually slow

• I would not go so far as saying inflation has peaked

• Might need to move rates into restrictive territory

• ECB will raise rates as high as necessary to achieve the desired result

FED Mester:

• Does not believe the Fed is close to a pause on tightening.

• The costs of stopping tightening too early are high 

• FED members need to see several more good inflation readings

EURUSD - following hawkish comments from Lagarde and Mester, the most popular currency pair continues to weaken and approaches major support at 1.0400. Source: xStation5