Euro unmoved despite central bank comments
During Friday’s European trading session, European Central Bank (ECB) policymaker and Governor of the Central Bank of Latvia, Mārtiņš Kazāks, stated that there is currently no need to adjust interest rates. The ECB remains vigilant and will respond if the economic situation changes significantly.
Kazāks emphasized that the ECB has successfully brought inflation back to its 2% target—marking a key milestone in its monetary policy objectives. He noted that the central bank is prepared to adjust rates if necessary, but for now, the current stance remains appropriate.
“We will adjust rates if the situation changes,” Kazāks said, underscoring the ECB’s flexible but cautious approach to future developments.
Despite the announcement, the Euro (EUR) showed little reaction. At the time of writing, EUR/USD was trading flat around 1.1635, with the pair moving sideways since the market opened on Friday. This muted response suggests that traders are awaiting stronger signals or new data before repositioning.
Kazāks also commented on the United States’ tariff policy, stating that its impact appears to be less damaging than initially feared. While this may ease some global trade concerns, it has not significantly influenced currency markets in the short term.