EUR deepened today's drop in the afternoon following comments from ECB member Villeroy. Villeroy, who is also head of Bank of France, said that disinflation is even faster than was expected and that incoming data supports view of inflation returning to 2% target. Moreover, he said that absent any shocks, rate hike cycle in euro area is over already. Speaking on rates cuts, Villeroy said that ECB can look at them when the time comes in 2024.
Money markets are now fully pricing in 125 basis points of ECB rate cuts in 2024.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appEURUSD moved to a fresh daily low following Villeroy's comments. Pair is attempting to break below the 1.0855 swing area and trades at the lowest level since mid-October 2023.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
