ECB Lagarde: Although long term inflation expectations are near 2%,they warrant monitoring

• Although long term inflation expectations are near 2%, they still warrant monitoring
• the parameters for reducing the APP portfolio will be closely in line with what we have done previously
• The main theme in wage negotiations becoming how wages can to some extent catch up with high inflation
• Price pressures remain strong and underlying inflation is still high
• While confidence is rising and energy prices have fallen, we expect activity to remain weak in the near term
• Risks to the growth outlook are now balanced and they were in December
• Risk to inflation have also become more balance especially in the near term
• Wages are growing faster supported by robust employment prospects

Comments are so far not that hawkish. No mention of 50 basis point hike at the next meeting yet.

The EURUSD is trading to new lows and look to retest the week lows from Monday's trading at 1.06547. Looking at the daily chart below, the next key target area comes between 1.0573 1.06156. At the beginning of the year, the price traded below that area but could not sustain momentum.