ECB's Lagarde declares disinflation process over, floats Euro as global currency candidate
European Central Bank (ECB) President Christine Lagarde confidently declared the ECB has achieved its disinflation targets while testifying before the European Parliament's Economic and Monetary Affairs Committee. Lagarde also teased at the idea of the Euro taking a more prominent role in global trade as the Trump administration works night and day to undermine global trust in the US Dollar (USD).
Key highlights
The disinflationary process is over.
The Euro area has held up well amid uncertainty.
The range of risks on both sides has narrowed for inflation.
Sluggish exports and a strong Euro to hold back the economy.
Headwinds to growth should fade next year.
The labor market is a source of strength.
The risks to growth are more balanced.
Inflation remains close to 2% target.
Wage growth is to moderate further.
Underlying inflation is consistent with mid-term goal.
No currency's global position is guaranteed.
This is a unique opportunity to strengthen the Euro's global role.
We need bold reforms to make the Euro a global anchor of trust.
We don't target the FX rate, but watching the impact on prices.
The ECB is in a good place.
We're still anticipating growth in 2H, but weaker than in 1H.
We are data dependent on rates.
Any EU decision on immobilised Russian assets needs to follow international rules.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
