Earnings for the euro in the aftermath of the ECB meeting

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The pound is falling to a six-week low against the euro on Friday after yesterday’s statements by European Central Bank President Christine Lagarde that there is concern in the Board. of the bank on the course of inflationwhich was interpreted by the markets as an indication that the bank no longer rules out an increase in interest rates this year.

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This change of attitude by the ECB overshadowed the decision of the Bank of England to raise its interest rate by 25 basis points for the second consecutive meeting, confirming analysts’ estimates. The central bank warned that inflation could exceed 7% this year, while four of the nine members of the Monetary Policy Committee wanted higher interest rates by 50 basis points.

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The euro is heading for its biggest weekly rise since March 2020 against the dollar, while against the pound it is gaining 0.6% today, expanding its weekly gains to about 1.4%.

Against the dollar, the euro gained 0.2% to 1.1460.

The pound is down 0.3% against the dollar at 1.3553, after the recent two-week high of $ 1.3628.

“The ECB made the biggest surprise and in this context the euro is stronger. The Bank of England did what the markets expected,” Mizuho analyst Colin Asher told Reuters.

Source: Capital

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