The “greenback” is clinging to stability. Overview for 10.09.2021

The major currency pair remains neutral on Friday and prepares to respond to the news. 

EURUSD is consolidating before the weekend. The current quote for the instrument is 1.1830.

During its September meeting, the European Central Bank left the benchmark interest rate intact at zero. The rates will remain the way they are until inflation in the Euro Area reaches the target of 2%. The regulator said that purchases under the PEPP would continue at €20 billion every month at least until March 2022 or until the coronavirus pandemic was over. The total volume of the program is € 1.85 trillion. 

The ECB Governor Christine Lagarde is sure that the economy will continue recovering and the GDP will regain its losses incurred because of the pandemic by the year-end. The GDP expectations for 2021 were revised upwards from 4.6% to 50%, for 2022 – downwards from 4.7% to 4.6%. According to the regulator’s estimations, inflation this year will be 2.2% instead of 1.9%, in 2022 and 2023 – 1.7% and 1.5% respectively. 

The ECB believes that the price pressure is slowly increasing and the recent inflation boost happened because of the energy price surge. The employment sector is also improving, while the business sentiment is going up and stimulating the investment flow. 

The regulator sees economic progress in some sectors and that’s good news. 

Later today, Christine Lagarde will give some more comments. Apart from that, some European countries will report on their inflation. In the late afternoon, the USA is scheduled to publish the Producer Price Index for August.