Impact of lockdown is less than it was a year ago
- We now have a more balanced picture of risks
- Economy expected to return to pre-pandemic size around the end of the year
- Build-up of savings is an upside risk
- I would expect pickup in inflation towards 2% in the next few months
- We do not see inflation rising towards 4% or 5%
- We are not out of tools for policy options
- We could introduce new monetary policy tools
- We are asking banks to get ready for negative rates
- But there is no view on whether we will use them or not
- Rise in rates in the market is consistent with change in economic outlook
Further Development
Analyzing the current trading chart of EUR/USD, I found that there is the consolidation phase in last 6 hours and you should watch for the breakout to confirm further direction.
Key Levels:
Resistance: 1,1942
Support level: 1,1910 and 1,1870
