ECB’s Sleijpen: Energy price retreat will have an impact on inflation

European Central Bank (ECB) policymaker and Dutch central bank chief Olaf Sleijpen said in the European trade on Tuesday that the falling energy prices after easing Middle East tensions would cool down Eurozone inflationary pressures.

Remarks

Europe's structural growth numbers are still pretty low.

AI is inflationary in the short term.

Market reaction

EUR/USD recovers in the European session to near 1.1400, but it is still 0.2% down from Monday's closing price. However, the impact appears to have come from the US Dollar (USD) which has given up slight early gains.