The greenback partly offset previous losses on the back of FOMC minutes

ECB President Lagarde stated that the fight against inflation is not yet over, highlighting the complex nature of the fight to maintain price level stability. She said that policymakers should be attentive to the risks of persistent inflation and reaffirmed the ECB’s commitment to price stability. While markets are expecting a rate cut in April or June next year, Lagarde said that policy rates could remain constant for at least a few more terms. ECB’s Schnabel echoed Lagarde’s views as she said that the disinflation process in the Eurozone is expected to slow down and there might even be a temporary uptick in inflation. Today, the economic calendar features the ECB financial stability review and consumer confidence index for the Eurozone. German Buba President Nagel will also be delivering a speech. The fibre is currently trading at 1.0901.

FOMC minutes published yesterday revealed that Fed officials acknowledge that policy tightening is bearing fruits as inflation is declining. They argued that high interest rates should be maintained until the 2% inflation target is reached. The committee also highlighted that further tightening would be data driven and that the ongoing correction due to past interest rate hikes would also be assessed. In the wake of the publication of the minutes, US equities were flashing red with the Dow Jones Industrial Average losing 0.18% and the S&P 500 down 0.20% as the greenback surged, partly offsetting previously losses. The Michigan consumer sentiment index and the 5-year consumer inflation expectation survey will be published in the course of the day. Other data include durable goods orders and initial as well as ongoing jobless claims. The greenback was trading at 103.73 against similar peers at the time of writing.