EUR/USD will Raise More After Traders Ignore Dovish Lagarde
EUR/USD saw a long-time low phase that went on to rise on May 25 and stopped for 1.2266. This went on low to 1.1524 on October 12. This lowering of the currency pairs looks to be ending as the latest week’s price is indicating that the trend is going high and will continue to follow this trend. The European central bank decided not to change the monetary policy of governing council and the news was spread when President Christine Lagarde released this statement at the conference. She said that ECB will raise the Eurozone interest rates in 2022 because the inflation will fall off by then.
Lagarde stated that it could increase a lot more in the future but as the years will pass on, the pressure of price rise will slow down because the high energy prices will be out of the equation. The market is moving fast in easier way as expected, this has been moved to price in a position earlier than expected. As a result of this, the EUR/USD got higher.
Having the credit for what you have is of utmost importance is a central bank chief. The ECB may not move toward the reduction of the monetary programs at the December meeting where the new staff will process the economic projections. Thursday’s increase in the currency pair shows that a strong rise in the currency pair has now begun after the five-month downtrend.
The upcoming weeks will make the Euro even stronger than its previous prices as several events are coming like Eurozone that will affect it. Things will change especially in Australia, the US, and the UK as the central bank decisions are going to happen on Tuesday, Wednesday, and Thursday. Apart from this, the US nonfarm payroll data will be released on Friday. The data release is the second tier that includes the German retail sales, industrial production, factory order, and Eurozone retail sales unemployment.