ECB sticks to hawkish policy stance despite weaker data, helping to dampen negative impact on the EUR – MUFG

Outside of the US, the focus has been on comments from policymakers at the ECB’s annual conference on central banking. Economists at MUFG Bank analyze EUR outlook.

EUR/USD continues to trade toward the top of this year’s trading range

The comments continue to highlight that the weak Eurozone economic data flow is not yet encouraging the ECB to shift away from its hawkish policy stance which is helping to dampen the negative impact on the Euro. It leaves EUR/USD continuing to trade towards the top of this year’s trading range. 

ECB President Lagarde is scheduled to speak again later today alongside Fed Chair Powell, BoE Governor Bailey and BoJ Governor Ueda. The ECB, BoE and Fed have all expressed concern recently about the risk of more persistent inflation.