The Euro’s weakness doesn’t scare anymore. Overview for 09.07.2021

EURUSD moved upwards a little bit but the demand for the “greenback” may return at any moment. 

The major currency pair has reached stability and is ready to move on. The current quote for the instrument is 1.1830.

Yesterday, the European currency did manage to find some support after all, which came from the ECB in the form of a new inflation target. The ECB Governor Christine Lagarde said yesterday that a 2% inflation was not the ceiling. A new monetary strategy implies that in the mid-term inflation in the region would form around 2%. This target is symmetric, meaning negative and positive deviations of inflation from the target are equally undesirable. 

It isn't that these changes are significant and they will change the entire monetary policy of the regulator. However, this move will allow the ECB to raise the inflation target in the future without interfering with what will happen to the financial markets. 

The weekly report on the Unemployment Claims showed 373K after being 371K the week before. The difference is rather small but it wasn’t in favour of the USD – investors decided that the labor market recovery after the pandemic was non-systemic and inconsistent. 

Later today, the European regulator will publish its ECB Monetary Policy Meeting Accounts and the American one – the Fed Monetary Policy Report. It’s difficult to imagine whether these documents will anything that market players may find interesting.