ECB leaders have again rejected the possibility of raising interest rates in the euro area next year. Christine Lagarde said that after March 31, when the current €1.85 trillion Pandemic Emergency Purchase Program (PEPP) ends, the ECB will not stop printing money to buy assets.

The pace of asset purchases will slow down, but the monetary authorities will not completely stop stimulating. The ECB is not worried about high inflation at all and considers it to be a temporary phenomenon. This is a negative signal for the European currency, inasmuch as the Fed is reducing the rate of asset purchases, which decreases the volume of dollar liquidity in the financial system, while the ECB, on the contrary, increases the liquidity surplus.

Trading recommendation: sell 1.1337/1.1360 and take profit 1.1285.