ECB's Lagarde: We continue to view inflation upswing as being largely temporary

Eren Sengezer FXStreet

Christine Lagarde, President of the Europen Central Bank (ECB), said on Thursday that they continue to view the inflation upswing as being largely driven by temporary factors, as reported by Reuters.

Additional takeaways

"The rebound phase of the euro area economy is increasingly advanced."

"We see the risks surrounding the euro area growth outlook as being broadly balanced."

"Price pressures could become more persistent if supply bottlenecks last longer or wages rise more than is currently anticipated."

"There is no evidence of significant second-round effects through wages."

"The governing council regularly recalibrates the net purchases under the Pandemic Emergency Purchase Programme (PEPP) based on a joint assessment of financing conditions and the inflation outlook."

Market reaction

The EUR/USD pair edged slightly lower from session tops after these comments and was last seen gaining 0.14% on the day at 1.1608.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.