EURUSD deepens decline after comments from ECB Villeroy

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.

EURUSD 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