Upcoming Speech of Lagarde May Suggest Future ECB Action

Upcoming Speech of Lagarde May Suggest Future ECB Action

European Central Bank (ECB) President Christine Lagarde is delivering a much-awaited speech today at 18:40 GMT. It is to be watched for hints on the monetary policy of the ECB after that speech. Her words will probably be interpreted by market analysts and participants given any possibility of shifting policy, mainly towards inflation control or economic stimulus measures.

If Lagarde is already suggesting a reduction of the resource policy, like hiking up interest rates or easing up on asset acquisitions, then this must be considered an ECB action towards curbing inflation, thus short-term support to the euro is created. Further downward pressure on the euro can be suffered in case any talk of dovish measures like an extension of stimulatory measures or lower interest rates arises.

Either way, markets are likely to be more agitated with the reaction because investors may change their decision according to the tone of Lagarde's speech. Still, there is no clear outcome and the speech is likely to influence eurozone markets and global financial trends in the near term.