European Central Bank (ECB) Governing Council member and Spanish central bank chief Pablo Hernandez de Cos said Tuesday, “risks to inflation are tilted to the upside in the short term.”
Additional comments
Recent data on inflation has shown surprising upwards trends both in inflation and core inflation.
Level of uncertainty around inflation is very high also due to geopolitical risks.
More than ever it is necessary to keep all options open on monetary policy.
We stick to our sequencing starting first with first tapering.
Next move on monetary policy is clear but will be gradual and depend on data.
Market reaction
EUR/USD sustains its bounce from daily lows of 1.1396 on these above comments. The spot was last seen trading at 1.1408, still down 0.31% on the day.