The European Central Bank today released its update on economic, financial, and monetary developments. The ECB sees growth moderating into 2022 primarily due to supply bottlenecks. Global supplier delivery times remain high as food and energy upward price pressure remains in place. These pressures reflect a rebound from the low-price environment spawned by the pandemic.
While the ECB credits higher vaccination rates for the support of increased consumer spending, higher energy prices may be offsetting the increase in spending. Shortages of materials, equipment, and labor is holding back manufacturing. And on the labor front, the number of people in the workforce and hours worked still remain under pre-pandemic levels.
EUR/USD is currently trading at $1.1468.
Traders interested in the full report should go to https://www.ecb.europa.eu/pub/economic-bulletin/html/eb202107.en.html.
The Bank of Mexico maintained its overnight target rate at 4.75%. No written statements by the Bank have been released at the time of this writing.
MXN/USD is currently trading at $20.5698.
No major regulatory events impacting traders or broker-dealers this morning.
Traders should contact their brokers for more information on how foreign exchange rates may react to events described in the above blog post.
Disclaimer: The above is provided for informational purposes and should not be construed as financial or legal advice or as creating an agreement to provide financial or legal advice.