EURUSD is trying to rise Overview for 21.06.2022
EURUSD is awkwardly growing.
The major currency pair is trying to keep its positive momentum on Tuesday. The current quote for the instrument is 1.0527.
The macroeconomic calendar was empty early in the week: the US had a holiday; the Euro Area didn’t offer a lot of numbers. However, investors still had something to pay attention to – the ECB Governor Christine Lagarde delivered a speech.
First, she said that the ECB was planning to raise its rates by 25 basis points in July – it’s an excellent signal in favour of the EUR. Lagarde said that activity in Europe was dropping because of high prices for energies and expanding uncertainty in the region. The core CPI is constantly rising – inflation can be easily seen in many sectors and becomes commonplace.
The next rate hike is planned for September. The clearer the regulator’s future steps, the better for the Euro.
Lagarde believes that the ECB’s monetary approach should be flexible. It means that the regulator is going to “play by ear” and act before the economy gets hurt.
The ECB admits the risks of recession, but this scenario is not the key one, and that’s also good news, because recession is currently the thing that some global economies are facing and afraid of.
Overall, Lagarde calmed investors down. The question is why hasn’t she done it before when the EUR was plummeting and no one could really realise what the ECB was planning to do?
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