💱Euro/US Dollar FX Spot Rate
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ECB's cautious stance and moderate inflation view reduce hawkish expectations, weakening EUR relative to USD.
Impact on assets 1
Others
European Central Bank Chief Economist Philip Lane said the current inflation shock is moderate and does not require aggressive policy action. He noted that inflation is now at 3% but should return to the 2% target within about a year. While monitoring second-round effects from high energy prices, he stressed the need for a cautious approach. Financial markets are pricing in at least two more rate hikes by the ECB.
ECB's cautious stance and moderate inflation view reduce hawkish expectations, weakening EUR relative to USD.