Lagarde: Inflation Will Remain Well Above Target

Lagarde's indication that inflation will remain well above the target strengthens expectations that the ECB will continue raising interest rates and remain tight for longer. This could reduce global risk appetite and create selling pressure in stock markets. While bond yields rise, the dollar may strengthen and emerging markets could be adversely affected. In countries with high external financing needs like Turkey, additional pressure on the exchange rate and interest rates may occur.

Lagarde's statement that inflation will remain well above the target indicates that the ECB will maintain its hawkish stance and could be supportive for the EUR in the short term. However, technical indicators are weak: the price is below the SMA20 and SMA50, MACD is negative and below the signal line, and RSI at 46 is in the neutral-weak zone. The slight decline over the past 24 hours and the overall downward momentum may limit the impact of the news. Nevertheless, the hawkish message is expected to provide some support for the EUR and slow the decline. In the short term, the direction is down, but the movement may be limited due to the news effect.