The euro remained below $1.06 after Lagarde said the ECB would act gradually, but with the option to play decisively in the face of any deterioration in inflation in the medium term, especially if there were signs of unpecking inflation expectations.
“The ECB is in a tough spot because it is expected to see a more significant slowdown than many of its peers,” said Mazen Issa of TD Securities in New York.
“There is an inherent limitation to what the ECB is going to be able to do, especially in the sense relative to, say, the Fed,” he added, pointing to the ongoing war in Ukraine and the risk of fragmentation in the euro zone. .
The dollar index hit a two-decade high of 105.79 this month and was last up 0.462% at 104.440.
New York Fed President John Williams said in an interview with CNBC on Tuesday that rates should “definitely” be in the 3%-3.5% range by the end of the year, but that he doesn’t see a recession anytime soon. USA.
On the other hand, the rise in crude oil prices made the Canadian and Australian dollars gain 0.21% and 0.13%, respectively. Oil prices have risen 10% in just a week on concerns over limited supply.
Source: Ambito
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