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ECB: Lagarde signals no near-term rate move – Danske Bank

Danske Research Team highlights that ECB President Christine Lagarde sees the economic fallout from the Iran war as not yet reaching the ECB’s adverse scenario. Despite higher energy prices, there is no clear evidence of second-round effects, leading the bank to push its expected rate hikes from April and June to June and July as policymakers await more data.

War impact not yet triggering ECB shift

"ECB President Christine Lagarde emphasised that the economic implications of the war in Iran have not yet reached the ECB's adverse scenario."

"Despite rising energy prices, there is no clear evidence of second-round effects to justify rate hikes."

"Lagarde's remarks suggest that the policy meeting on 30 April is likely too soon for any rate adjustments, as the central bank continues to gather more data."

"Last week, we tweaked our ECB call, pushing our expected rate hikes from April and June to June and July."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

EUR/GBP keeps hovering below 0.8720 as UK employment data supports Pound

The Euro keeps treading water within a broadly 20-pip range against the British Pound (GBP). The pair retreated from session highs at 0.8713, amid upbeat UK unemployment figures, and remains moving without a clear bias, with downside attempts contained above 0.8700 and bulls limited below 0.8720.
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USD/CAD Price Forecast: Remains on the defensive as bearish bias persists below 100-day EMA

The USD/CAD pair remains on the defensive around 1.3650 during the early European session on Tuesday. Rising oil prices due to Middle East tension provide some support to the commodity-linked Loonie.
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