.The european fell to a two-month low of 1.0812 during the course of the ECB press conference. A few of that was on the United States buck side as retail sales trumped expectations but the mass these days's 40 pip decrease in domestically driven.The ECB only doesn't seem to receive it.Lagarde repetitively highlighted drawback risks to growth as well as even stated that "all the data is aiming in the same direction" around poor development and also rising cost of living, however there was no promise to do just about anything regarding it.Instead, she consistently highlighted information dependence. Lagarde was talked to if they considered reducing 50 basis aspects today and showed they really did not also review it.The ECB primary refi cost is actually right now at 3.25% and inflation is actually clearly headed in the direction of aim at. That is actually just too expensive for an economy that's straining and seeing consistent undershoots in rising cost of living. Lagarde stated soft positive PMIs 4-5 times yet also disregarded the danger of recession.Even if there is actually no downturn, there is a higher threat that the eurozone is bogged down in reduced growth and reduced rising cost of living. It's particularly raw due to the fact that European federal governments are visiting experience high simplicity pressures in the coming years.Now the ECB really did not require to cut 50 bps today but it will have been nice for her to signify a more-dovish stance as well as to place it on the table for December. Over in the US, you have a considerably more powerful economic climate as well as but the Fed chairman is actually delivering meme-like dovish pronouncements and also actually cut through fifty bps.In a vacuum cleaner, higher fees are good for a currency but that's certainly not what is actually happening in the eurozone. Why? The market finds Lagarde as falling back the curve and also it suggests they will certainly need to reduce much deeper later on, and also maintain costs reduced for longer. There is actually a higher risk the eurozone come back to a low-inflation, low-growth economy and that's why Goldman Sachs is stating the euro must be the popular hold funding money.