EUR ticks lower as Holzmann supports June rate cut

Choir of ECB members who express their support for a rate cut at next week's meeting is growing. Mario Centeno, head of Portuguese central bank and ECB member, said earlier today that inflation is under control now and that rate reduction process is about to begin. Similar comments were made shortly after 1:00 pm BST by Robert Holzmann, head of Austrian central bank and ECB member. Holzmann said directly that he will support a rate cut at ECB meeting next week. He added that disinflation is underway and that there is a little risk of a hiccup. However, he also warned that he will not automatically support moves beyond June and will base his votes on the economic data that will be released afterwards. Speaking on full-2024, Holzmann said he expects two rate cuts, or a maximum of three.

EUR pulled back from daily highs following comments by ECB members, with the move gathering pace after Holzmann comments. While EURUSD is trading around 0.15% below daily highs, it is still up almost 0.2% on the day.

Source: xStation5