European Central Bank (ECB) Governing Council member and Bank of France head Francois Villeroy de Galhau poured cold water on a 50 bps summer rate hike expectations.

Villeroy said that a 50 bps rate hike isn't part of the central bank consensus.

Additional comments

“ECB is in the process of normalizing policy.”

“There is no trade-off between growth and inflation.”

Market reaction

EUR/USD’s upside lost traction on the above comments, as the pair now trades at 1.0705, adding 0.16% so far.