EUR/USD hovering around 1.1800 on Lagarde

• EUR/USD stays mostly unchanged around 1.1800.
• Chairwoman Lagarde showed concerns over the Delta variant.
• Lagarde reiterated that inflation outlook still well below target.

The single currency keeps the familiar range and motivates EUR/USD to orbit around the 1.1800 level as Lagarde’s presser is underway on Thursday.

EUR/USD muted near 1.1800

EUR/USD exchanges gains with losses in quite a narrow range as ECB’s Lagarde carries on with the usual press conference post-ECB meeting.

Lagarde once again reiterated that the inflation outlook still runs well below the bank’s target, while she advocated for the need keep favourable financing conditions. Still on the inflation front, Lagarde noted that weak wage growth and a strong exchange rate collaborates in depressing price pressures. She expects temporary factors affecting inflation to lose traction in early 2022.

The central banker also stressed that the PEPP was not discussed at the meeting and deemed as premature any exit talk.

She also expressed concerns over the spread of the Delta variant of the coronavirus and the uncertainty surrounding it, with the Services sector likely bearing the brunt of this increase in cases.

EUR/USD levels to watch

So far, spot is gaining 0.16% at 1.1809 and faces the next up barrier at 1.1895 (weekly high Jul.6) followed by 1.1975 (weekly high Jun.25) and finally 1.2002 (200-day SMA). On the flip side, a breakdown of 1.1751 (monthly low Jul.21) would target 1.1704 (2021 low Mar.31) en route to 1.1602 (November 2020 low).