EUR/USD: ECB's de Guindos Sees No Inflation Risk from 1.15 Exchange Rate

EUR/USD edged 0.2% higher to 1.0535 after ECB Vice President Luis de Guindos stated that a EUR/USD exchange rate of 1.15 would not significantly impede the central bank's inflation target. This comment suggests the ECB has considerable room to ease policy without concerns about imported inflation from a weaker euro. The current rate remains well below the mentioned 1.15 level, trading nearly 900 pips lower. De Guindos's remarks indicate the ECB prioritizes domestic economic conditions over exchange rate considerations in its policy decisions. Market participants interpreted this as a dovish signal, though the euro's reaction was muted given ongoing geopolitical tensions. Immediate resistance sits at 1.0550, while support holds at 1.0500. The comments provide insight into ECB thinking ahead of Thursday's policy meeting, where a 25 basis point rate cut is widely expected. Traders should monitor other ECB speakers for confirmation of this policy stance.