ECBs Schnabel:
- wage growth has picked up substantially
- as a result there are concerns about second-round facts on inflation
- it seems fiscal policy is to expansionary
- inflation expectations are stubbornly high
The EURUSD moved back above the 100-day moving average 1.0877 during the Powell comments. However, that may have also been due to the deteriorating talks in Washington which would potentially slow growth. Rates went lower. USD moved lower. Powell did say inflation was too high but he also said that risk is more balanced.
That took the steam out of the EURUSDs move lower and led to the move back higher.
EURUSD moved above its 100 day MA and 50% retracement