*We followed the Durable Goods Orders data in the US at 15:30. While the headline figure was reported at 1.7%, the core data came in at 0.6%. Despite this data coming in above expectations, it did not recover the Dollar Index, and the currency pair continues to be priced around 1.0965 levels. The data overall was positive. With the increasing air traffic after the pandemic, orders that were suppressed during the pandemic have started to be placed in bulk.

*European Central Bank President Lagarde emphasized once again the persistently high inflation in her statements during the day and stated that further tightening is necessary. She noted that even though inflation is receding, there is never a won victory, and a firm stance must be maintained. Another member, Wunsch, stated that their ability to bring inflation exactly to 2% is limited and they need to accept it. In addition to Lagarde’s hawkish statements, the low risk perception in the markets during the day pushed down the dollar index, and the EURUSD pair was priced around 1.0940 levels.

*Policy maker Dhingra from the Bank of England stated that the most stubborn place for inflation is food prices and emphasized that inflation in market prices should not be considered as “greed”. However, while there is a sharp decline in PPI, he mentioned that it takes one or two quarters for CPI to catch up. It is now necessary for this delayed effect to start for the benefit of the UK, as stagflation risks are increasing, and if much stronger interest rate hikes are needed to bring down inflation, it could cause a sharp brake on this economy.

*Reports of Guyana, one of the fastest-growing oil producers in recent times, being invited to OPEC were denied by Guyana. However, they mentioned that OPEC invited them to a meeting, not for membership.