The European Central Bank, (ECB), targets 2% inflation and Bundesbank President Joachim Nagel said ''it will take a while to return to 2% inflation.''
Earlier in the month, he was quoted saying that the ECB should start reducing its large holdings of government debt in the first quarter of next year as part of its fight against high inflation.
This reduction, often called quantitative tightening, should be done by not replacing all the bonds that mature, rather than through outright sales, Nagel said in a speech.
This approach would allow bond yields to rise, ease a collateral shortage in the market and underline the ECB's determination to reduce inflation, Nagel argued.
As per the prior analyses, EUR/USD Price Analysis: Bulls under pressure as bears test commitments at 1.0600, and EUR/USD Price Analysis: Bulls move and seek a test of key H4 resistance structure, the Euro is pulling in the bulls in and around 1.0600 into the neckline of the H4 resistance structure:

In what is a rather cluttered schematic, the price is testing the M-formation's resistance as a potential topping pattern. So long as the bears guard a break of the 1.0650s, then the focus will be on a test of the dominant bullish trendline that remains intact. On a break of 1.0650, however, the 1.0700s will be the focus.
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