“EU inflation connected to energy prices,” Said European Union (EU) Economics Affairs Commissioner Paolo Gentiloni during the Bloomberg (BBG) TV appearance.
Additional comments
We must avoid fiscal and monetary policy competing.
Monetary policy tightening is unavoidable.
US inflation is not yet on a downward path.
Elsewhere, global rating giant Moody’s also stated that higher energy costs and slowing growth elevate social, as well as fiscal, risk across Europe.
Market reaction
The news seems to help the EUR/USD bulls take a breather after rising the most in over a week. That said, the major currency pair was last seen retreating to 0.9770.
Also read: EUR/USD Price Analysis: Oscillates around the 20-day EMA eyeing Friday’s US economic data
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