Today, in addition to the heads of the French and Finnish central bank, Olli Rehn and Francois Villeroy, Christine Lagarde too will have the opportunity to comment once again. Economists at Commerzbank expect her words to cushion the downside in EUR/USD.

Rising interest rate expectations for the European Central Bank

“The ECB bankers are not tired of underlining in their speeches how important decisive action is to control inflation successfully.”

“The market is also betting on rising interest rate expectations for the ECB. Lagarde is likely to be wary of saying anything today that would take away the basis for these expectations. That should limit the downside in EUR/USD.”