EUR/USD continues to stay under pressure near a one-month low against the dollar, giving up the 1.17 mark yesterday amid Lagarde speech. European Central Bank President Christine Lagarde said Monday that it was possible that the euro area inflation could become stronger, but the risks of such a scenario were limited. While inflation could prove weaker than foreseen if economic activity were to be affected by a renewed tightening of restrictions, there are some factors that could lead to stronger price pressures than are currently expected, Lagarde said at a virtual hearing of the European Parliament. But we are seeing limited signs of this risk so far, which means that our baseline scenario continues to foresee inflation remaining below our target over the medium term, Lagarde added. EUR/USD pair is currently quoting at 1.1694. Besides, a stronger dollar amid rising US bond yields is also weighing on the single common currency. US 10-year Treasury yields hit 1.5% for the first time since June on signals the Federal Reserve is shifting toward a more hawkish policy. Investors await speeches from Federal Reserve policymakers for clues on when the central bank could taper its pandemic-era economic support. DXY is currently quoting at 93.38.
Powered by Commodity Insights