ECB's de Guindos: Inflation to start converging to 2% target in the spring

• Services inflation remains the top concern
• A prudent approach to monetary policy is needed

Meanwhile, ECB chief economist Lane is also out with some comments as per below:

• 2% inflation target is to be achieved fairly soon
• January services inflation was softer than expected
• It is best not to focus too much on neutral rate

All in all, just a couple of token remarks as they are still set to cut rates again in March. EUR/USD continues to trade narrowly today, now seen up 0.1% to 1.0393. Just be mindful of the large option expiries at 1.0400 as highlighted here.

This article was written by Justin Low at www.forexlive.com.



Source link