ECB’s Lane: We are in a zone of normal central banking

Pablo Piovano FXStreet

In an interview with Germany's Frankfurter Allgemeine, Philip Lane, the chief economist of the European Central Bank (ECB), indicated that although the majority of factors suggested a continued decline in euro area inflation, there were also concerns, such as the possibility of unsuccessful European Union (EU)-US trade negotiations, that could lead to an increase in inflation.

Key Quotes

ECB's task to bring inflation back to 2% is mostly completed.
Services inflation is still too high. Inflation is to remain close to 2% in the coming months.
The impact of tariffs may influence medium-term inflation.
No one is talking about dramatic rate cuts. We are in a zone of normal central banking.
We won't return to low pre-COVID inflation rates.
Some spillover effects from high US rates in the medium term.
We need to look at the impact of exchange-rate shifts.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD sits near monthly top, above 0.7000 as renewed USD buying caps gains

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and near the monthly high set the previous day after RBA Deputy Governor Andrew Hauser's hawkish remarks. Meanwhile, the US Dollar attracts some buyers as energy-driven inflation fears keep bets for at least one Fed rate hike in 2026 firmly on the table. Moreover, geopolitical uncertainty is acting as a tailwind for the safe-haven buck and caps gains for the Aussie.

USD/JPY eyes 158.50 amid modest USD strength; remains confined in a familiar range

USD/JPY attracts some dip-buyers during the Asian session on Wednesday, though it remains confined within a multi-week range as the uncertainty over the timing of the next BoJ rate hike keep Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold struggles near weekly low, just above $4,100 amid USD uptick

Gold remains depressed for the fourth straight day, flirting with the weekly low during Wednesday’s Asian session, with bears awaiting a sustained break below $4,100 before placing fresh bets. Energy-driven inflation fears keep Fed hike bets firmly on the table, reviving US Dollar demand and undermining the non-yielding bullion. However, an unconfirmed report of US-Iran diplomacy could cap the safe-haven buck, which could offer some support to the precious metal.

Ethereum bounces off $2,400 for a sixth day despite ETF outflows

Ethereum (ETH) bounced again near the $2,400 level on Tuesday, the sixth straight day, as its on-chain cost basis and key moving averages have stood as key support levels. The sub-$2,400 level has proven to be a strong support for the top altcoin over the past week amid macro pressures. Buyers have repeatedly stepped in to defend prices whenever it falls below the level.

NFLX, META and TSLA deliver earnings this week. The market's mood rides on three reports

Netflix, Meta Platforms and Tesla all report earnings this week, and the market’s mood rides on three reports that could easily reset the tone for the entire market heading into the holiday season. Investors are heading into this stretch with a mix of anticipation and unease because each company represents a different pillar of market sentiment. All three have much to prove.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.