Lagarde speech: Inflation is not where the ECB wants it

Speaking on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, European Central Bank (ECB) President Christine Lagarde said that she is “confident inflation will reach the  2.0% target.”

Additional quotes

Inflation is not where the ECB wants it.

But on the right path towards the 2.0% target, though no victory yet.

Too optimistic markets not helpful in fight against inflation.

We can’t shout victory until inflation sustainably at 2.0%.

We’re watching wages, profit margins, energy and supply chains.

Second-round effects would be cause for concern.

The ECB has achieved peak rates, short of a major shock.

It is likely that we will cut rates by the summer.

Market reaction to Lagarde speech

At the time of writing, EUR/USD is off the five-week lows of 1.0855, trading flat at 1.0868.

Euro price today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Pound Sterling.

USD 0.06%-0.11%0.20%0.58%0.41%0.37%0.12%
EUR-0.06% -0.17%0.15%0.52%0.37%0.34%0.05%
GBP0.12%0.16% 0.31%0.67%0.52%0.48%0.21%
CAD-0.20%-0.15%-0.32% 0.37%0.21%0.17%-0.11%
AUD-0.58%-0.52%-0.68%-0.38% -0.15%-0.19%-0.47%
JPY-0.43%-0.36%-0.56%-0.23%0.15% -0.06%-0.31%
NZD-0.39%-0.32%-0.49%-0.17%0.19%0.04% -0.28%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

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