Reuters analysis details how latest ECB rate-hike pushback turns euro into falling knife

In an in-depth analysis, Reuters detailed how the European Central Bank’s latest comments on inflation have lobbed another grenade in the path of the euro. Already down over 7% to the dollar this year, the euro tumbled against every major currency after ECB President Christine Lagarde quashed money markets’ expectations of a 2022 interest rate rise earlier this week. Tightening policy now would only choke off economic recovery, she said. Her stance pits the euro against peers which are backed by policy-tightening expectations.