European Central Bank Governing Council member and Bundesbank President Joachim Nagel said on the 15th that the ECB should maintain a cautious stance on monetary tightening, but needs to monitor energy price developments and act decisively if necessary. He noted that the situation is extremely volatile and highly uncertain against the backdrop of renewed military conflict in the Middle East and a fresh rise in crude oil prices. He said it is desirable to proceed cautiously while acting decisively when required, and that monetary policy will remain vigilant.
Renewed military conflict in Middle East and fresh rise in crude oil prices support oil prices.
ECB cautious stance on tightening, but may act decisively if needed; no clear directional signal for EUR vs USD.