According to Ewald Nowotny, the European economy is in very good condition, and monetary policy is not keeping up with it, it is still in the mode of deep crisis. In the euro area as a whole, price stability has been achieved. In the current situation, policy normalization seems to be the best solution and should be speeded up.
Nowotny pointed out, however, that in the matter of inflation he is more optimistic than most of the ECB members. He added that it does not mean that he is isolated in his opinions. The largest risk is currently the situation of the banking sector in Italy. The Italian government is still sending mixed signals.
Today at 01:00 pm GMT the President of the ECB Mario Draghi will speak in Brussels to the ECON Committee. He will discuss the economic and monetary perspectives of the euro area and deal with the topics proposed by the committee. He will talk about the risk related to the lending activities of banks and central bank communications in the situation of a non-standard approach to monetary policy.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The pair has started the week without major moves as the market still trades around the level of 1.1750. The current local high was established at the level of 1.1803 and since then the price has entered the corrective cycle. The channel still prevents the price from falling down, so the technical support at the level of 1.1720 should hold as well. The momentum is positive, but not so strong and it is pointing down, just as the stochastic indicator.
