While the euro remains under pressure against the dollar, risking a complete loss of its bullish momentum, one European policymaker believes the European Central Bank should not be overly concerned about temporarily missing the 2% inflation target and should not rush into further interest rate changes.

"We should not worry about the deviations we are likely to see in the short term," said the head of Croatia's central bank in an interview. Vujcic, one of the more hawkish members of the Governing Council, stated that the ECB can afford to wait, and that incoming data will determine what needs to be done next.

Indeed, hasty decisions can lead to undesirable consequences. The economic landscape in Europe remains uneven due to U.S. tariffs, and further monetary easing could accelerate inflation, which has only just returned to levels acceptable for the ECB. However, it is important to consider not only the inflation rate, but also other factors such as employment, economic growth, and the geopolitical situation.

Still, maintaining the status quo is not an ideal option either. Keeping interest rates unchanged at high levels for an extended period could slow the already weak pace of economic growth in the euro area. Therefore, the ECB must carefully weigh all pros and cons before making any decisions.

At a time when the global economy is facing numerous challenges, central banks need to remain flexible and adaptable. Excessive focus on hitting the inflation target could lead to the neglect of other important aspects of economic stability.

Some of Vujcic's colleagues, including Olli Rehn from Finland and Francois Villeroy de Galhau from France, have recently voiced concerns that the inflation rate may not reach 2% for an extended period—especially if the euro continues to strengthen. After eight quarter-point rate cuts over the past year, officials have indicated that the easing cycle is nearing its end. Given that inflation has reached its target and the economy remains resilient to various external shocks—from trade to wars—investors expect a pause this month, but at least one more cut before the end of the year.

"We are in a good position, with both inflation and interest rates at 2%," said Vujcic. "At this stage, we can wait for more data," he added, describing inflation risks as largely balanced on both sides.

Vujcic emphasized that by the September meeting, the ECB will have July and August inflation data as well as second-quarter GDP figures. "All of this will give us more clarity about what we need to do," he said.

As for the current EUR/USD technical picture, buyers now need to focus on reclaiming the 1.1740 level. Only then will it be possible to aim for a test of 1.1790. From there, a move toward 1.1825 could follow, though achieving that without support from large market participants may be difficult. The most distant target is the 1.1866 high. In the event of a decline, I expect significant buying interest only around the 1.1690 level. If there is no reaction there, it would be preferable to wait for a drop to 1.1650 or consider opening long positions from 1.1620.

Regarding the current GBP/USD technical outlook, pound buyers need to break through the nearest resistance at 1.3605. Only this will allow a move toward 1.3640, above which further gains may be difficult. The most distant target is the 1.3680 level. If the pair falls, bears will try to regain control over the 1.3560 level. If successful, a break below this range would deal a serious blow to bullish positions and push GBP/USD down to the 1.3530 low, with the prospect of reaching 1.3490.