ECBs Lane: Inflation is expected to remain high in the near term

ECBs Lane is on the wires saying:

• The new phase of policy will consist of meeting by meeting (MBM) approach to setting interest rates vs rate forward guidance.
• inflation is expected to remain high in the near term
• cyclical inflation forces will be subject to push – pull dynamics
• a steady pace in closing the gap to the terminal rate is important for several reasons
• long-term inflation expectations remain close to 2%
• the worst case scenario would be that the anchoring of inflation expectations
• near-term inflation expectations are quite elevated but long-term expectations remain close to 2%

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To read the full speech CLICK HERE

Technically, the EURUSD squeezed up to test/move above the 200 hour MA at 1.00169 currently. The price is below that level now trading above and below the parity level as I type. The 100 hour MA is back down at 0.9967 and would need to be rebroken to increase the bearish bias.

On the topside a move back above the 200 hour MA and the swing high from Thursday at 1.00328 would give buyers more victories inhe the short term technical picture with the 38.2% at 1.0078 as the next key upside target (move down from teh August high).