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EUR/USD steady as Lagarde signals inflation progress, German CPI awaited

  • The ECB President says inflation is converging toward the 2% target in the medium term.
  • Investors turn their attention to Germany’s inflation data due on Friday.
  • The US Dollar firms as markets digest ongoing US trade policy uncertainty.

EUR/USD trades around 1.1800 on Thursday at the time of writing, little changed on the day, after briefly reacting to the downside following comments from European Central Bank (ECB) President Christine Lagarde.

Speaking before the European Parliament’s Committee on Economic and Monetary Affairs, ECB President Christine Lagarde stated that the institution’s efforts to bring inflation down have been effective and that price growth is expected to stabilize at the 2% target in the medium term. She also noted that food inflation should continue to ease and stabilize slightly above 2% by late 2026. Lagarde reiterated that the ECB remains data-dependent and stressed the need to stay agile.

These remarks reinforce the scenario of a prolonged monetary policy pause, limiting immediate support for the Euro. Meanwhile, the latest business surveys in the Eurozone indicate a more mixed economic backdrop. The Economic Sentiment Indicator declined to 98.3 in February, down from a revised 99.3 in January, and below expectations. Meanwhile, Consumer Confidence printed at -12.2, a slight improvement from the prior month but still in negative territory.

Traders now await the preliminary German Consumer Price Index (CPI) readings due on Friday.

At the same time, the US Dollar regains some ground. The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, trades near 97.70 after finding support as investors look beyond uncertainty surrounding US trade policy. Despite the US Supreme Court’s decision challenging parts of President Donald Trump’s tariff framework, markets believe Washington will seek to preserve its trade agreements.

On the monetary policy front, investors largely expect the Federal Reserve (Fed) to keep interest rates unchanged at its upcoming policy meetings. This outlook helps stabilize the US Dollar in the short term. Weekly Jobless Claims data due later in the day could provide further insight into the strength of the US labor market.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD0.09%0.19%-0.23%-0.00%0.05%0.18%0.22%
EUR-0.09%0.10%-0.29%-0.09%-0.04%0.11%0.13%
GBP-0.19%-0.10%-0.42%-0.19%-0.14%0.00%0.04%
JPY0.23%0.29%0.42%0.23%0.29%0.40%0.46%
CAD0.00%0.09%0.19%-0.23%0.06%0.19%0.23%
AUD-0.05%0.04%0.14%-0.29%-0.06%0.14%0.18%
NZD-0.18%-0.11%-0.00%-0.40%-0.19%-0.14%0.03%
CHF-0.22%-0.13%-0.04%-0.46%-0.23%-0.18%-0.03%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Ghiles Guezout

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

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