ECBs Nagel is on the wires saying:
- Interest rates should rise further
- He could've imagined a 50 basis point hike at the last meeting but is okay with the 25
- Will address at G7 talks need for new global precautions to offer banks some protection if affected by rumors of distress
- The market is not always right about the ECB's terminal rate
The comments are slowing the declines in the EURUSD . The price is trading at 1.0964 after dipping to 1.0957 and below the 50% midpoint of the April trading range at 1.09632. Buyers and sellers are battling around the key midpoint level.
Early today ECBs Kazimir said:
- Slowing hikes lets the ECB to go higher for longer.
- There’s plenty of ground left to cover.
- Core inflation, wage pressures and high-profit margins call for vigilance.
ECB's Vulcic said:
- More hikes will be required to return inflation to target
ECBs Kazaks said:
- Ray taking may not be finished in July
- Doing too little remains the greater danger
- Not impossible for the ECB to hike/pause in the scenario Fed is cutting (the Fed members do not expect to cut although the market still feels they will).