The European currency does not show much signs of life against the background of the lack of important statistics and another failure with a breakdown of the resistance of 1.0600.
The British pound shows the volatility of about 25 points in all. But before we talk about the technical picture, I would like to touch on Lagarde’s speech a little. Investors are also still concerned about high inflation and are closely monitoring what the European Central Bank and its representatives are saying and doing. In an interview with ECB President Christine Lagarde today, she outlined the clear positions of the regulator, but this did not affect buyers of risky assets.
The management of the Central Bank is afraid of the high debt burden of several European countries, especially Italy, as the increase in interest rates, which will occur from day to day, will lead to an increase in the burden of servicing the national debt. Some shits that continue to actively increase their budget deficits, it’s not just about Italy anymore, may face serious problems in the future. Most recently, the President of the European Central Bank announced a planned emergency meeting to resolve the issue of further growth in bond yields. Now Lagarde has downplayed fears of a recession in the eurozone, saying her team is ready to raise rates at a faster pace — if necessary, especially if inflation continues to rise.