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Euro weakens as Lagarde pushes back on rate hike expectations

MUFG says Lagarde’s remarks emphasized higher long-term yields and a more measured ECB response.

Reported · Written up by our desk · Major Pairs

MUFG’s Lee Hardman said European Central Bank President Christine Lagarde has pushed back on expectations for another back-to-back ECB rate hike, arguing that higher long-term yields should be considered and that the ECB should respond in a measured way.

The note came as the euro faced broader pressure in FX trading linked to shifting central bank expectations.

Beyond the euro, FXStreet also cited moves in other pairs: AUD/USD was near two-month lows around 0.6950 after Australian CPI data disappointed, while USD/JPY held losses below 157.00 despite weaker domestic factory output, with hawkish expectations for the Bank of Japan and intervention risks supporting the yen.

Latest closeUSD/JPY 157.34 ▼0.1%

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