EURUSD STEADIES NEAR 3-MONTH LOW; CURRENT DISINFLATIONARY PROCESS EXPECTED TO CONTINUE, SAYS LAGARDE

Published on Feb 15, 2024 16:27

EURUSD is seen mildly recovering near a three-month low on Thursday amid small pullback in dollar index. However, greenback hovering near recent highs is keeping the pair under pressure. EURUSD is quoting at $1.0746. The dollar index which measures the value of the USD relative to a basket of global currencies, retraces from a three-month high of nearly the 105.00 mark and hovers around 104.54. The US Treasury yields edge lower, with the 10-year yield standing at 4.22%. Christine Lagarde, the President of the European Central Bank (ECB), stated that recent data indicates ongoing subdued economic activity in the near term. The current disinflationary process is expected to continue, but the Governing Council needs to be confident that it will lead us sustainably to our 2% target, she added. We will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction, taking into account the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, ECB Chief noted. Meanwhile, EURINR futures are in positive at 89.23, up 0.26% on the day.