Euro rose in European trade on Wednesday against the dollar for the fifth straight session, about to touch three-week highs following bullish remarks by ECB President Christine Lagarde.
The remarks hurt the odds of an ECB interest rate cut later this month, as policymakers continue to analyze the inflation’s trajectory.
As European data grows scarce this week, the markets will focus on the US labor data, ahead of the French parliamentary elections next Sunday.
The Price
The EUR/USD rose 0.2% to $1.0762, with a session-low at $1.0736.
The pair closed 0.1% higher, the fourth profit in a row, marking three-week highs at $1.0776.
Lagarde
ECB President Christine Lagarde said in the Central Banks Forum in Portugal that the ECB needs more time to verify inflation is heading towards 2%, adding that recent developments showed a rate cut isn’t necessary.
The ECB cut rates for the first time in June for the first time since 2016 following an extended wave of rate hikes, but held off any further moves due to uncertainty.
Lagarde added that it’ll take some time before the ECB can make sure inflation is stable.
European Inflation
Eurozone inflation slowed down last month but services prices remained stubbornly high, triggering concerns.
European Rates
Lagarde’s remarks reduced the odds of an ECB interest rate cut at the July meeting.
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