ECB governors sought greater acknowledgement of inflation risks – Reuters

Dhwani Mehta FXStreet

The European Central Bank (ECB) policymakers wanted explicit acknowledgment of upside risks to inflation in the policy meeting last week but were rebuffed by Chief Economist Phillip Lane, Reuters reports, citing sources close to the debate.

Additional takeaways

"Quite a few wanted to acknowledge the upside risks but Philip (Lane) pushed back hard.”

"After a lengthy debate we appeared to agree on a 'small upside risks', but even that was nowhere to be found in the statement."

The closest ECB President Christine Lagarde came to such an acknowledgment was when she said "there is possibly an upside risk" in response to a reporter's question.

"The statement didn't quite give back the flavor of our debate."

“Several people questioned the quality of the ECB's forecasts, which have been subject to large revisions for years.”

Market reaction

EUR/USD has quickly pulled back from daily highs of 1.1274, now trading at 1.1263, up 0.22% so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD resumes downside below 1.3200

GBP/USD resumes its downside below 1.3200 in European trading on Wednesday. The pair remains vulnerable amid a broadly firmer US Dollar and chaotic UK political environment. The focus is now on BoE-speak for further trading impetus.

EUR/USD sits at yearly low near 1.1350 on USD strength

EUR/USD sits at yearly lows near 1.1350 in the European morning on Wednesday. The pair remains vulnerable to further declines amid a bullish US Dollar. The Greenback continues to draw support from hawkish Fed bets and US-Iran peace deal uncertainty.

Gold: Bears retain control as Fed rate hike bets continue to boost USD

Gold recovers slightly from a nearly two-week low, around the $4,050 region, touched earlier this Wednesday. The commodity, however, sticks to its bearish bias for the second straight day, and seems vulnerable to weaken further amid sustained US Dollar buying.

Dogecoin tests a key make-or-break point amid waning retail support

Dogecoin trades below $0.08000 maintaining a steady decline for the seventh straight week. The meme coin is losing its retail strength as DOGE futures Open Interest drops 10% in 24 hours, while institutional demand remains muted with zero inflows so far this week.

Tech rout weighs on US stocks as the USD clocks a fresh 2026 high

Major US equity benchmarks ended Tuesday’s session considerably in the red, with the Nasdaq 100 down 3.3%, the S&P 500 off by 1.4%, and the Dow Jones down 0.1%. Stocks were largely weighed down by tech amid doubts over the AI-driven rally; the Philadelphia Semiconductor Index slid nearly 8%.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.