- EUR / USD jumps to 3-day highs beyond 1.1640.
- The ECB expects high inflation to continue for longer.
- Preliminary Q3 GDP for the US stood at 2.0%
The single currency has risen more than 65 pips against the dollar since the start of Christine Lagarde’s appearance after the ECB’s monetary policy announcement. The pair has reached new three-day highs at 1.1650.
EUR / USD rises with Lagarde press conference
Lagarde said the current phase of high inflation is expected to last longer than anticipated, mainly due to the inability of supply to match rising demand. He noted that medium-term inflation is still below the bank’s 2% target and admitted that high consumer prices will remain hot for longer and are expected to cool down next year.
Still on the issue of inflation, Lagarde said that the ECB will be alert to the progress of wage inflation.
Once again, he reiterated that the markets’ bets on a rate takeoff are not in line with the bank’s guidance.
In the data space, preliminary US Q3 GDP disappointed estimates posting 2.0% QoQ and weekly claims increased by 281,000.
Technical levels
At time of writing, the pair is trading above 1.1649, gaining 0.40% daily, and faces the next bullish barrier at 1.1669 (October 19 monthly high) followed by 1.1699 (55-day SMA) and finally 1.1755 (October 22 weekly high). of September). On the other hand, a break below 1.1584 (Oct. 26 weekly low) would target 1.1571 (Oct. 18 low) en route to 1.1524 (Oct. 12, 2021 low).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
