ECB’s de Guindos: ECB vigilant to second round effects of price gains

The European Central Bank Vice President Luis de Guindos crossed the wires in the last hour, saying that the latest forward-looking indicators show expansion has lost some strength.

Additional quotes:

• Delta variant hasn't had the expected impact.
• Expect to see strong growth in the third quarter.
• Expects inflation to keep rising for the next 2-3 months.
• Supply constraints is a component having a structural impact on inflation.
• Sees factors pushing up inflation fading in 2022.
• The monetary policy response is not the same if the inflation increase is permanent.
• ECB is vigilant to second-round effects of price gains.

Market reaction:

The remarks did little to influence the shared currency, or provide any impetus to the EUR/USD pair, which remains at the mercy of the USD price dynamics. The pair was last seen trading with modest intraday gains, just above the 1.1600 mark.