Group 1 - The European Central Bank (ECB) faces challenges in achieving its inflation target due to a significant appreciation of the euro, which has risen approximately 14% since January [1][4] - ECB's Francois Villeroy de Galhau indicated that a sustained 10% rise in the euro could lower inflation by 0.2 percentage points annually over the next three years, increasing the risk of not meeting the inflation target [1] - ECB Vice President Luis de Guindos noted that a rise in the euro to above 1.20 USD could complicate matters, highlighting concerns about the negative impact of currency appreciation on exporters [4] Group 2 - Villeroy emphasized that the ECB will not adjust its policies to target specific exchange rates, acknowledging the significant impact of euro appreciation on inflation [4] - The ECB is expected to maintain a flexible approach, with Villeroy suggesting that further easing of monetary policy may be necessary in the next six months [4][6] - Current inflation in France has been below 2% since August of the previous year, dropping to 0.7% in May, which is the lowest level in over four years [6]