The European Central Bank (ECB) President Christine Lagarde communicated yesterday that she is “really confident” that euro zone inflation is under control. Lagarde’s words convey certainty and confidence – something that the Fed and Bank of England (BoE) appear to be moving further away from. Lagarde’s words contrast the most recent ECB statement that mentioned, ‘domestic price pressures are strong and are keeping services price inflation high’, putting up little resistance to a general decline in the euro.
Tomorrow’s German manufacturing PMI figure is unlikely to produce a massive market response as the manufacturing sector in Germany remains extremely subdued.
