ECB’s de Guindos: Must continue to monitor underlying inflation

Make virtual opening remarks at XIII Encuentro Financiero on Tuesday, European Central Bank (ECB) Vice President Luis de Guindos noted that the central bank must continue to monitor underlying inflation.

Speaking at a financial event in Milan last week, de Guindos said “for the headline (inflation) … I think that we’re there in terms of the peak, perhaps one decimal point up or down, it will be hovering, but I think that in the first half of next year we will see a decline.”

Market reaction

EUR/USD is moving back and forth in a tight range of around 1.0370, adding 0.42% on the day. de Guindos’ comments have little to no impact on the Euro.