EUR/USD grinds near 1.0800 as ECB, Fed policymakers defend hawkish moves, eyes on US inflation, NFP

EUR/USD licks its wound at the lowest level in 13 weeks while making rounds to 1.0800 during the early hours of Monday’s Asian session. In doing so, t

Fed’s Powell defends hawkish monetary policy moves, showed readiness for more rate hikes if needed.Escalating economic pessimism about Eurozone favors Euro bears ahead of key inflation, employment data from EU, US.licks its wound at the lowest level in 13 weeks while making rounds to 1.0800 during the early hours of Monday’s Asian session.

With this in mind, President Christine Lagarde flagged the need to set interest rates sufficiently restrictive for as long as necessary to achieve a timely return of inflation to the 2% medium-term target. ECB’s Lagarde also added that the fight against inflation "is not yet won." On the same line, ECB Governing Council member Martins Kazaks termed the current interest rates as restrictive while also stating that prematurely stopping monetary policy tightening could present a larger problem compared to rate cuts.

Additionally, Reuters quoted anonymous sources with knowledge of the discussion to mention that the momentum is growing for a pause in the Elsewhere, the softer prints of the US Purchasing Managers Index and Michigan Consumer Sentiment Index contrasted with mixed details of Durable Goods Orders, mid-tier activity data and inflation expectations.

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