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Villeroy Pushes Back On Hawks

ECB
  • In contrast to a hawkish Bloomberg sources piece earlier today, Bank of France Governor and ECB Governing Council Member Francois Villeroy de Galhau stuck to his view that the ECB has already done the bulk of what it needs to do to bring inflation under control and that further hikes will be “more marginal”.
  • “What remains to be covered is more marginal. We have decided on rapid rate increases since July, because we were even starting from negative rates! We are now at 3.25%, and it is the future effect of these past hike decisions that should essentially allow us to reach our objective within two years.”
  • EURUSD continues to trade in the middle of the day's range at 1.0968, near unchanged on the day versus pre-CPI lows of 1.0942 that came close to support at yesterday's low of 1.0941 before jumping to post-CPI highs of 1.1007.


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