ING’s Francesco Pesole highlights that ECB President Christine Lagarde will speak to the ECON Committee, but stresses that current data leave markets pricing flat ECB rates for 2026. Upcoming CPI is unlikely to shift expectations. The short‑term EUR:USD rate differential remains unsupportive for EUR/USD, yet ING still views 1.1750 as solid support absent a major Iran escalation.
Lagarde and data unlikely to shift rates
“ECB President Christine Lagarde will speak before the ECON Committee of the EU Parliament today. She recently stressed the idea of “agile” decision-making on monetary policy, but there simply isn’t enough evidence for markets to price in anything other than flat rates for the rest of 2026 now.”
“CPI data over the coming days may also fail to move the needle significantly for rate expectations. For now, the EUR:USD short-term rate differential remains unsupportive for EUR/USD, but we haven’t seen enough restoration of confidence in the dollar to call for a major leg lower from here. We still see 1.1750 as a good support level, barring a major escalation in Iran.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)