ECB Signals Stable Inflation Amid Strong Eurozone Growth

European Central Bank (ECB) President Christine Lagarde has confirmed that underlying inflation remains consistent with the bank’s 2% medium-term target, while the eurozone economy shows signs of steady growth. Speaking to the European Parliament’s Committee on Economic and Monetary Affairs in Brussels, Lagarde highlighted that rising household spending and a resilient, inclusive labor market are supporting economic activity.

She emphasized that inflation is expected to stay near the 2% target in the coming months and reassured markets that the ECB is ready to respond flexibly to emerging challenges, including the use of new policy tools if needed to maintain price stability.

In currency markets, the euro emerged as the strongest among major currencies against the U.S. dollar. Other major pairs, including GBP/USD, USD/CAD, and AUD/USD, are reflecting a mix of economic data and central bank expectations.

Meanwhile, gold remains steady above $4,200 despite gains in equity markets, and cryptocurrencies such as Bitcoin, Ethereum, and XRP show modest upward movements despite low overall demand. In Asia, Japan’s new “Sanaenomics” policies aim to boost growth and stabilize inflation in 2026, though careful monitoring will be needed to avoid unintended effects.

Investors continue to watch central bank guidance and economic signals closely, as these will shape global market trends in the months ahead.