ECB Knot
ECBs Knot is speaking and says:
- headline inflation appears to have peaked
- policy rates have socially been brought into neutral range
- Keeping current pace of hikes into May could well be needed if underlying inflation does not materially abate
- Once we see a clear, decisive turn in underlying inflation dynamics, I expect ECB to move to smaller steps
- Sharp decrease in energy prices could bring down headline inflation faster than projected by ECB
- Slowdown in growth seems even more shallow, short lived than expected.
- Sees no recession in winter
The EURUSD trade between a swing area between 1.0710 and 1.07243 and near the session lows for the day. A break below would have traders looking toward 1.06909 which is the 61.8% retracement of the 2023 trading range (see posts here). For a technical view of the EURUSD, USDJPY, GBPUSD and USDCAD at the start of the US session, CLICK HERE.