ECB Weber’s Comments Knock EUR/USD Below 1.48
EUR/USD fell below 1.48 after the ECB’s Axel Weber expressed uncertainty that slower growth conditions will cool elevated inflation in the Eurozone.
Weber also provided the usual ho-hum ECB cadence, promising inflationary vigilance to ensure properly entrenched inflation expectations.
FX markets have become increasingly touchy to growth warnings from ECB officials, which may have been the case today as EUR extended declines after Weber said higher energy prices will reduce growth potential in the Eurozone.
On rates, Weber said current ECB rates are congruent with price stability — a counterintuitive assertion given recent Eurozone inflation data.