ECB If interest rates remain at current,inflation might reach 2%.

On Monday, he spoke at a conference in Madrid. Pablo Hernandez de Cos, a member of the European Central Bank’s (ECB) Governing Council, stated, “If we keep rates at these levels long enough, there are very good chances that we will be able to reach our 2% target in a timely manner.”

“This approach is particularly important to avoid both insufficient tightening, which would impede the achievement of our inflation target, and excessive tightening, which would unnecessarily damage economic activity and employment,” de Cos said.

Market’s reaction on ECB statement.

Here is the intial reaction of EcB statement on EURUSD. At the time of writing, the EURUSD is down 0.25% on the day to 1.0625, weighed down by a further risk-aversion surge in the European session.

https://voiceoftraders.com/analysis/today-forex-markets-are-cautious-as-the-new-week-begins