Recently, the European Central Bank's attitude toward exchange rate issues has become increasingly cautious. Governor Kazaks recently stated that the impact of the euro's 14% appreciation in the first half of last year is still gradually emerging. This wave of appreciation was mainly driven by repeated statements from U.S. President Trump regarding trade tariffs, which directly undermined market confidence in the dollar.

Interestingly, it takes about 12 months for exchange rate fluctuations to fully transmit from market reactions to actual economic impacts. In other words, the full effects of last year's euro appreciation will only become fully apparent this spring. The European Central Bank has already incorporated these factors into its latest economic forecasts, but policymakers like Lagarde are still closely monitoring subsequent developments.

Currently, the ECB's stance is to remain observant. Kazaks explicitly pointed out that there is no need to take any action at this stage, and officials are basically in a "wait-and-see" mode. However, this cautious attitude reflects a reality: global uncertainty is rising, and the economic impacts of euro appreciation are still gradually unfolding. The ECB is prepared to respond to possible changes at any time. The market is also closely watching the central bank's next move.