Economics
Euro edges up, eyes US inflation
Lagarde signals a rate hike ECB President Christine Lagarde spoke today at an event sponsored by the Slovenia Central Bank, but what was of most interest…

Lagarde signals a rate hike
ECB President Christine Lagarde spoke today at an event sponsored by the Slovenia Central Bank, but what was of most interest were her remarks on future rate hikes. The ECB remains in dovish mode, but with inflation hitting 7.5% in the eurozone, the ECB will be tightening the monetary screws. More ECB members are publicly urging the central bank to raise rates and in her speech, Lagarde appeared to heed these calls, in her clearest signal yet that a rate hike is coming later in the year.
Lagarde stated that the ECB will end asset purchases under its QE programme, likely in Q3. This will be followed by a rate hike “some time” later. She acknowledged that “some time” was imprecise but added that it could be as little as several weeks. Lagarde added that the normalisation process would be “gradual”, which means investors shouldn’t expect an aggressive rate-hike cycle such as we’re seeing with the Fed and the BoE.
US inflation next
All eyes are on the US inflation report for April. Headline CPI is expected to drop from 8.50% to 8.1%, and Core CPI is forecast to fall from 6.50% to 6.0%. The inflation report is likely to produce a binary outcome. If inflation does drop significantly, as expected, we will see headlines trumpeting that inflation has peaked, and the US dollar will likely lose ground. Conversely, higher numbers than expected will lead to expectations of faster Fed tightening and should give the dollar a boost.
.
EUR/USD Technical
- 1.0557 remains a weak resistance line, followed by resistance at 1.0632
- There is support at 1.0473 and 1.0398

Vancouver Arby’s Manager Accused Of Urinating In Store’s Milkshake Mix For “Sexual Gratification”
Vancouver Arby’s Manager Accused Of Urinating In Store’s Milkshake Mix For "Sexual Gratification"
Police have accused an Arby’s manager in…
Shipping Around Retail ‘Inflation’
This whole “inflation” scenario isn’t really that difficult to piece together, effect from cause. Sure, Jay Powell’s trying to nuke it by hiking…
A “Tsunami of Cash” for Oil Investors
Oil prices have settled in above $100 a barrel … the macro forces that will keep them elevated … U.S. oil companies are minting a fortune at $100+…
-
Gold19 hours ago
Futures Jump Amid Optimism China’s Covid Lockdowns Are Ending
-
Precious Metals19 hours ago
Dolly Varden Silver Mobilizes Three Drill Rigs to Commence an Initial 30,000 Meters of Resource Expansion, Upgrade and Exploration Drilling
-
Financing News18 hours ago
ONE WORLD LITHIUM Jack Liftons Comments on the Lithium Industry and US Doe Patent
-
Financing News12 hours ago
ROSEN, RESPECTED INVESTOR COUNSEL, Encourages Pure Gold Mining Inc. Investors With Losses to Inquire About Securities Class Action Investigation – LRTNF
-
Precious Metals17 hours ago
A new frontier in energy storage from Canadian gold explorer
-
Financing News17 hours ago
EnGold Drills 655 Metres of 0.14% Copper Equivalent at Ann North, Deep Hole at Aurizon Gold at 1200 Metres and Still Underway
-
Energy & Critical Metals14 hours ago
Five Ideas to Add Lithium Exposure to Your Portfolio
-
Financing News19 hours ago
Prosper Gold Reports Drill Results and Outlines Additional Targets at Golden Sidewalk Project, Red Lake, ON