ECB’s de Guindos: Inflation will hover at present levels over the next 12 months

Haresh Menghani FXStreet

During a scheduled speech this Monday, Vice-President of the European Central Bank (ECB) Luis de Guindos said that inflation will hover at present levels over the next 12 months.

Additional quotes:

Wage growth of above 2% should be considered when looking at inflation.
There are a lot of uncertainties surrounding the coronavirus outbreak.
Starting to see signs of stabilization on a global level.
Risks are less tilted to the downside for the Euro area.
Monetary policy side effects are becoming more tangible.
Fiscal policy has to play a role.

The not so encouraging remarks with regards to the inflation outlook seemed to have exerted some pressure on the shared currency and dragged the EUR/USD pair to fresh session lows, around the 1.1070 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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