Close. of the ECB. Lagarde speaking on CNBC said:
- We will soon lower rates, barring any major surprises.
- Geopolitical events have not yet had a very significant impact on commodity prices.
- We are observing a disinflationary process which is evolving according to our expectations.
- Provided there is no additional shock, there will be time to moderate restrictive monetary policy within a reasonably short time frame.
- We are not committing in advance to a path of lower rates
- There is still great uncertainty.
- The ECB needs to be careful and look at the data to confirm our view.
- Refusal to comment on market prices for three rate cuts in 2024.
- We believe the rates are sufficiently restrictive and have an effect on inflation.
- April and May will be a key confidence period for inflation.
- The path to 2% inflation will be strewn with pitfalls. The decline in rates is not linear.
- We expect inflation to fluctuate around the line that is currently falling.
- What differs most between the US and EU is consumer behavior.
- EU consumers are very cautious and continue to save.
- The American consumer consumes and the level of savings is lower than that of the EU.
- Tax policy was significantly stricter in the United States and targeted at consumers.
- We are dependent on data, we are not dependent on the Fed.
- We need to pay attention to exchange rates and the value of currency.
- Lagarde refuses to say whether the EURUSD’s move towards parity is a good or bad thing.
- We will focus firmly on price stability and the 2% target.
The interview is over… EURUSD moved down to the middle of the day’s trading range at 1.0627, but found buying support near that mid-level. The day’s high reaches 1.0653. The low was at 1.06016.
This article was written by Greg Michalowski at www.forexlive.com.
cnbctv18-forexlive