ECB President Christine Lagarde told a news conference that while risks to the eurozone’s growth outlook have shifted to the downside, the central bank has made substantial progress in undoing monetary easing by three consecutive rate increases.
“Overall, Lagarde seems to have signaled a turn, without saying so explicitly,” TD Securities strategists said.
The euro fell from a one-month high of $1.0094 earlier in the day and fell below parity with the dollar following the ECB rate decision.. The European currency was down 1.1% at $0.9969.
The dollar strengthened after data showed US gross domestic product advanced at an annualized rate of 2.6% last quarter, ending two straight quarterly declines in output, raising concerns that the economy it was in recession.
Sterling, meanwhile, fell 0.58% against the US currency to $1.1559, following a two-day rally following Rishi Sunak’s appointment as prime minister.
The yen gained 0.14% to 146.19 per dollar. Trading in the Japanese currency has been volatile after the Bank of Japan’s intervention reports on Friday and Monday.
Source: Ambito
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