• EUR/USD jumps to 3-day highs beyond 1.1640.
• The ECB sees inflation running hot for longer.
• Flash US Q3 GDP came at 2.0%; Claims rose by 281K.

The single currency manages well to keep the bid tone unchanged and pushes EUR/USD to fresh tops past the 1.1640 level on Thursday.

EUR/USD bid on Lagarde’s presser

EUR/USD gathers further traction as the press conference by Chairwoman Lagarde is under way on Thursday.

In fact, Lagarde said that the current phase of elevated inflation is expected to last longer than anticipated mainly due to the inability of supply to match the increasing demand. She noted that medium-term inflation is still below the bank’s 2% goal and admitted that elevated consumer prices will run hot for longer and are seen cooling down next year.

Still on the inflation issue, Lagarde said the ECB will be alert to the progress of wage inflation.

She once again reiterated that markets’ bets on a rates lift-off are not in line with the bank’s guidance.

On the data space, US flash Q3 GDP came short of estimates at 2.0% QoQ and weekly Claims rose by 281K.

EUR/USD levels to watch

So far, spot is losing 0.04% at 1.1597 and faces the next up barrier at 1.1669 (monthly high Oct.19) followed by 1.1699 (55-day SMA) and finally 1.1755 (weekly high Sep.22). On the other hand, a break below 1.1584 (weekly low Oct.26) would target 1.1571 (low Oct.18) en route to 1.1524 (2021 low Oct.12).